Ethereum price rises above the $3,550 resistance. ETH follows Bitcoin and could soon rally towards the $4,000 resistance zone.
- Ethereum is gaining pace above the $3,550 resistance zone.
- The price is above $3,650 and the 100-hour Simple Moving Average.
- A connecting bullish trend line is forming with support at $3,600 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair appears to be preparing for a move towards the $3,850 and $4,000 levels.
Ethereum price begins a new increase
Ethereum price extended its rally like Bitcoin above the $3,500 level. BTC skyrocketed and even jumped above the $68,000 mark. ETH is showing signs of strength and is rising above the $3,650 level.
There was a significant move above the $3,700 level. A new multi-month high is formed at $3,715 and the price is now consolidating its gains. The trading price is above the 23.6% Fib retracement level of the upward move from the swing low $3,465 to high $3,715.
Ethereum is now trading above $3,650 and the 100 hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at $3,600 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the upward move from the swing low of $3,465 to the high of $3,715.
The immediate upside resistance is near the $3,720 level. The first major resistance is near the $3,780 level. The next major resistance is at $3,850, above which the price could gain bullish momentum. The next stop for the bulls could be near the $3,920 level.
Source: ETHUSD on TradingView.com
If there is a move above the $3,920 resistance, Ether could even rally towards the $4,000 resistance. Further gains could require a test of $4,200.
Downward correction in ETH?
If Ethereum fails to clear the resistance at $3,720, a downward correction could occur. The first support on the downside is near the $3,650 level.
The first major support is near the $3,600 zone and the trend line. The next key support could be the $3,550 zone. A clear move below the $3,550 support could push the price towards $3,420. Any further losses could push the price towards the $3,350 level.
Technical indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Main support level – $3,600
Main resistance level – $3,720
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