Ethereum extended its rally towards the $ 3,650 level against the US dollar. ETH price corrects gains, but the dips are likely to remain limited below $ 3,500.
- Ethereum began another spike above the USD 3,600 resistance level.
- The price is now trading above $ 3,500 and the 100-hour simple moving average.
- The ETH / USD hourly chart (data feed on Kraken) broke below a shrinking triangle with support near USD 3,580.
- The pair could start rising again as long as it stays above the $ 3,500 mark.
Ethereum pricing continues to be supported
Ethereum remained in a positive zone above the USD 3,500 resistance zone. ETH climbed above the $ 3,600 mark and the 100-hour simple moving average.
The price even surged above the $ 3,600 mark, but there was no continuation upward. Ether was trading as high as $ 3,652 before a downward correction set in. There was a break below the $ 3,600 mark. The price traded below the 23.6% fib retracement level of the move up from the low of $ 3,343 to the high of $ 3,652.
There was also a break below a contracting triangle with support near USD 3,580 on the ETH / USD hourly chart. The price is now consolidating near the $ 3,550 level. Immediate resistance to the upside is near the $ 3,580 level. The first major resistance is near the $ 3,600 mark.
Source: ETHUSD on TradingView.com
The next major resistance is near the $ 3,650 level, above which the price could accelerate upward. In the named case, the price could potentially soar towards the $ 3,700 mark. The next major resistance could be at $ 3,800. Further gains could move the price towards the $ 3,880 level.
Dips Limited at ETH?
If Ethereum fails to rise above the $ 3,600 and $ 3,650 resistance levels, it could prolong its decline. Initial support on the downside is near $ 3,550.
The first major support is now forming near the $ 3,500 mark and the 100-hour simple moving average. It is near the 50% Fib retracement level of the move up from the low of $ 3,343 to the high of $ 3,652. Further losses could push the ether price towards the USD 3,450 support zone.
Technical indicators
Hourly MACD – The MACD for ETH / USD is slowly moving in the bearish zone.
Hourly RSI – The RSI for ETH / USD is now below the 50 level.
Great level of support – $ 3,500
Great resistance level – $ 3,650
