Ethereum Price Trims Gains, Are Dips Still Attractive In Near Term?

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Ethereum price failed to continue higher above the $3,725 resistance zone. ETH trimmed gains and now consolidates near the $3,475 support.

  • Ethereum failed to climb higher above the $3,725 resistance level.
  • The price is trading near $3,500 and the 100-hourly Simple Moving Average.
  • There was a break below a key bullish trend line with support at $3,510 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh increase if it stays above the $3,420 support zone.

Ethereum Price Faces Rejection

Ethereum price started a decent increase above the $3,550 resistance. ETH even cleared the $3,650 resistance zone, but the bears were active near $3,725. A high was formed at $3,726 and the price started a fresh decline, like Bitcoin.

There was a move below the $3,600 and $3,550 levels. There was a break below a key bullish trend line with support at $3,510 on the hourly chart of ETH/USD. The pair even spiked below the 50% Fib retracement level of the upward move from the $3,224 swing low to the $3,726 low.

Ethereum is now trading near $3,500 and the 100-hourly Simple Moving Average. Immediate resistance is near the $3,520 level. The first major resistance is near the $3,560 level. The next key resistance sits at $3,610, above which the price might test the $3,650 level.

Ethereum Price

Source: ETHUSD on TradingView.com

The main resistance is now near $3,725, above which Ether could gain bullish momentum. In the stated case, the price could rise toward the $3,800 zone. If there is a move above the $3,800 resistance, Ethereum could even rise toward the $4,000 resistance.

More Losses In ETH?

If Ethereum fails to clear the $3,610 resistance, it could continue to move down. Initial support on the downside is near the $3,475 level.

The first major support is near the $3,420 zone or the 61.8% Fib retracement level of the upward move from the $3,224 swing low to the $3,726 low. The next key support could be the $3,340 zone. A clear move below the $3,340 support might send the price toward $3,240. Any more losses might send the price toward the $3,120 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $3,420

Major Resistance Level – $3,610

Source: NewsBTC

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