Ethereum Recovers Steadily After Selloff, Traders Watch Resistance Near $3,720

[Ben Graham]

Ethereum price started a recovery wave above $3,350. ETH is showing positive signs but faces hurdles near the $3,720 resistance.

• Ethereum started a decent upward move above $3,350 and $3,400.
• The price is trading above $3,500 and the 100-hourly Simple Moving Average.
• There was a break above a bearish trend line with resistance at $3,350 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move up if it clears the $3,720 zone.

Ethereum Price Attempts Recovery

Ethereum price managed to stay above $3,200 and started a recovery wave, like Bitcoin. ETH price was able to climb above the $3,350 and $3,400 resistance levels.

There was a break above a bearish trend line with resistance at $3,350 on the hourly chart of ETH/USD. The pair surpassed the 50% Fib retracement level of the downward move from the $3,920 swing high to the $3,058 low. The upward move was such that the price spiked above $3,620.

Ethereum price is now trading above $3,550 and the 100-hourly Simple Moving Average. If there is another recovery wave, the price could face resistance near the $3,650 level. The next key resistance is near the $3,720 level and the 76.4% Fib retracement level of the downward move from the $3,920 swing high to the $3,058 low.

The first major resistance is near the $3,750 level. A clear move above the $3,750 resistance might send the price toward the $3,820 resistance. An upside break above the $3,820 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $3,880 resistance zone or even $3,925 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $3,650 resistance, it could start a fresh decline. Initial support on the downside is near the $3,580 level. The first major support sits near the $3,500 zone.

A clear move below the $3,500 support might push the price toward the $3,450 support. Any more losses might send the price toward the $3,350 region in the near term. The next key support sits at $3,250 and $3,220.

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 zone.

Major Support Level – $3,500

Major Resistance Level – $3,650