Ethereum found bids near the $3,140 zone and corrected higher against the US Dollar. ETH price must clear $3,325 and the 100 hourly SMA to start a decent increase.
Ethereum traded as low as $3,143 and is currently correcting higher.
The price is now trading below $3,300 and the 100 hourly simple moving average.
There is a short-term rising channel forming with resistance near $3,300 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must clear $3,300 and the 100 hourly SMA to gain bullish momentum.
Ethereum Price Eyes Recovery
Ethereum traded as low as $3,143 before the bulls appeared. ETH formed a base above the $3,150 and started a decent upward move.
There was a break above the $3,200 resistance level. Ether price was able to clear the 23.6% Fib retracement level of the key drop from the $3,550 swing high to $3,143 low. However, it is still trading below $3,300 and the 100 hourly simple moving average.
On the upside, an initial resistance is seen near the $3,300 level. There is also a short-term rising channel forming with resistance near $3,300 on the hourly chart of ETH/USD.
The next major resistance is near the $3,325 level and the 100 hourly simple moving average. A clear move above the $3,325 level could even push the price above the 50% Fib retracement level of the key drop from the $3,550 swing high to $3,143 low.
Source: ETHUSD on TradingView.com
If ether price settles above the $3,325 and $3,345 resistance levels, it could start a steady increase. In the stated case, the price could climb above the $3,400 zone. The next key barrier is near the $3,450 level and a connecting bearish trend line.
Fresh Decline in ETH?
If ethereum fails to start a fresh increase above the $3,325 level, it could start another key decline. An initial support on the downside is near the $3,230 zone.
The next major support is near the $3,200 level. If there is a downside break below the $3,200 support, the price could resume its decline. In the stated case, the price may even decline below the $3,143 low.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,200
Major Resistance Level – $3,325
