Ethereum Price Rips Higher by 8%, Forcing Bears to Reassess

[Ben Graham]

Ethereum price started a major increase above the $3,160 resistance. ETH is now consolidating gains and might dip toward the $3,250 zone.

• Ethereum started a downside correction after a major rally to $3,375.
• The price is trading above $3,300 and the 100-hourly Simple Moving Average.
• There was a break above a major bearish trend line with resistance at $3,140 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move up if it stays above the $3,250 zone.

Ethereum Price Revisits $3,350

Ethereum price remained stable above $31,20 and started a fresh increase, like Bitcoin. ETH price rallied above the $3,160 and $3,200 resistance levels.

There was a break above a major bearish trend line with resistance at $3,140 on the hourly chart of ETH/USD. The bulls even pumped the price above $3,300. A high was formed at $3,374, and the price is now correcting some gains.

Ethereum price is now trading above $3,300 and the 100-hourly Simple Moving Average. If the bulls can protect more losses below $3,300 or the 23.6% Fib retracement level of the recent wave from the $3,061 swing low to the $3,374 high, the price could attempt another increase.

Immediate resistance is seen near the $3,340 level. The first key resistance is near the $3,380 level. The next major resistance is near the $3,420 level. A clear move above the $3,420 resistance might send the price toward the $3,500 resistance. An upside break above the $3,500 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $3,550 resistance zone or even $3,650 in the near term.

Downside Correction In ETH?

If Ethereum fails to clear the $3,340 resistance, it could start a fresh decline. Initial support on the downside is near the $3,300 level. The first major support sits near the $3,250 zone.

A clear move below the $3,250 support might push the price toward the $3,220 support and the 50% Fib retracement level of the recent wave from the $3,061 swing low to the $3,374 high. Any more losses might send the price toward the $3,180 region.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $3,250

Major Resistance Level – $3,340