Ethereum is holding the key $3,120 support zone against the US Dollar. ETH price is consolidating and it seems like it could soon clear the $3,500 resistance zone.
Ethereum is holding the ground above the $3,120 and $3,200 support levels.
The price is still well below the $3,600 level and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $3,380 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely forming a double bottom pattern near the $3,125 zone.
Ethereum Price Shows Positive Signs
Ethereum extended its decline below $3,500, but it remained stable above the $3,120 zone. ETH made two attempts to clear the $3,120 and $3,100 support levels, but the bears failed.
It seems like the price is forming a double bottom pattern near the $3,125 zone, similar to bitcoin. The recent low was near $3,127 before the price started a decent recovery. It broke the $3,300 resistance level. Ether climbed above the 23.6% Fib retracement level of the recent drop from the $3,885 swing high to $3,127 low.
There was also a break above a key bearish trend line with resistance near $3,380 on the hourly chart of ETH/USD. However, the pair is still well below the $3,600 level and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
An immediate resistance is near the $3,450 level. The first major resistance is near the $3,500 level. It is close to the 50% Fib retracement level of the recent drop from the $3,885 swing high to $3,127 low. If the mentioned double bottom pattern is valid, the price is likely to surge above $3,500.
The next stop for the bulls could be $3,600 or the 100 hourly simple moving average, where the bears might take a stand.
More Losses in ETH?
If Ethereum fails to continue higher above the $3,450 and $3,500 resistance levels, it could start another decline. An initial support on the downside is near the $3,350 level and the broken trend line.
The first key support is near the $3,300 level. The main support is now forming near the $3,125 level. If there is a downside break below the $3,125 zone, the price could decline towards the $3,000 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.
Hourly RSI – The RSI for ETH/USD is now close to the 50 level.
Major Support Level – $3,300
Major Resistance Level – $3,500
