Ethereum price started a nice recovery wave above the $3,240 zone. ETH is rising and facing resistance near the $3,480 zone.
- Ethereum started a minor recovery wave above the $3,240 zone.
- The price is trading above $3,320 and the 100-hour simple moving average.
- There was a break above a short-term contracting triangle with resistance at $3,240 on the hourly chart of ETH/USD (data feed by Kraken).
- The pair may continue to rise if it clears the $3,480 resistance level.
The price of Ethereum rose more than 5%
Ethereum price started a recovery wave above the $3,150 level Bitcoin. ETH was able to clear the $3,180 and $3,240 resistance levels to move into a short-term positive zone.
Additionally, there was a break above a short-term contracting triangle with resistance at $3,240 on the hourly chart of ETH/USD. The pair also climbed above the $3,350 and $3,400 levels. Finally, it tested the $3,480 zone. A high was made at $3,473 and the price is now consolidating gains.
There was a slight decline below the 23.6% Fib retracement level of the upside from the $3,186 swing low to the $3,473 high. Ethereum price is now trading above $3,300 and 100-hour simple moving average.
On the upside, the price seems to be facing resistance near the $3,450 level. The first major resistance is near the $3,480 level. Key resistance is now forming near $3,500. A clear move above the $3,500 resistance could send the price towards the $3,550 resistance.
An upside break above the $3,550 resistance could call for further gains in the coming sessions. In the mentioned case, Ether could move towards the $3,650 resistance zone or even up to $3,720 in the near term.
Downside correction in ETH?
If Ethereum fails to clear the $3,480 resistance, it could initiate another decline. Initial support on the downside is near the $3,350 level. The first major support sits near the 50% Fib retracement level of $3,280 or the upside from the $3,186 swing low to the $3,473 high.
A clear move below the $3,280 support could push the price towards the $3,240 support. Any further losses could send the price towards the $3,120 support level in the near term. The next major support sits at $3,050.
Technical indicators
Hourly MACD – MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Main support level – $3,280
Key resistance level – $3,480
