Ethereum’s price is seeking to rebound above the $3,500 range, but it must surpass the $3,580 resistance level to sustain its upward trend in the near future.
Ethereum has made a decent recovery above the $3,350 range and is currently trading above both $3,450 and the 100-hourly Simple Moving Average. Moreover, there has been a breakout from a short-term bullish flag pattern with resistance at $3,480 on the hourly chart of ETH/USD provided by Kraken’s data feed.
To continue its upward movement, Ethereum needs to settle above the key resistance zone at $3,580.
Ethereum’s price began its upward trajectory after surpassing the resistances at $3,250 and $3,350, similar to Bitcoin. It even managed to break through the $3,500 resistance, subsequently entering a positive zone.
After reaching a high of $3,587, there was a minor pullback, and the price dipped beneath the $3,500 level. The bulls, however, stepped in around $3,400.
Currently, Ethereum is exchanging hands above $3,500 and the 100-hourly Simple Moving Average. On the upside, immediate resistance lies near the $3,550 level, followed by a major resistance at $3,580. If Ethereum surpasses these levels, it could gain bullish momentum, potentially rallying towards $3,800. In the event that the price goes beyond the $3,800 resistance, Ethereum may even target the $4,000 resistance. Further gains could lead to a test of $4,080.
If Ethereum fails to overcome the $3,580 resistance, it might experience another decline. Initial support is expected at the $3,410 level, followed by a major support zone near $3,320, which represents the 50% Fib retracement level of the recovery wave from the $3,059 swing low to the $3,587 high. The subsequent crucial support stands at the $3,200 zone. A clear break below this level might push the price down towards $3,060, and any further losses may test the $3,000 level.
Technical indicators are showing positive signs as the MACD for ETH/USD is gaining momentum in the bullish zone, while the RSI is now above the 50 level.
To summarize, Ethereum’s price is showing signals of an uptrend continuation, but bulls must overcome the $3,580 resistance level for further upward movement.