Ethereum price fell again and retested the $3,365 support area. ETH could start a new surge towards $3,700 if it remains above $3,365.
- Ethereum is still holding the key support area of $3,365.
- The price is trading below the $3,550 level and the 100 hourly simple moving average.
- There is a solid bearish trend line forming with resistance near $3,500 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could form a double bottom pattern and rise towards the $3,700 resistance level.
Ethereum price is retesting key support
Ethereum price failed to gain speed to move above the $3,580 and $3,650 resistance levels. ETH responded to the downside like Bitcoin and fell below the $3,500 support level. There was a sharp move below $3,420, but the bulls were active again near $3,350.
A bottom has been formed near the $3,350 level and the price is rising again. There was a move above the $3,380 and $3,400 resistance levels. The price was able to clear the 23.6% Fibonacci retracement level of the downward move from the high of $3,649 to the low of $3,350.
Ethereum is now trading below the $3,550 level and the 100 hourly simple moving average. It appears that the price may form a double bottom pattern and rise towards the $3,700 resistance level. If there is a new increase, the price may face resistance near the $3,460 level.
The first major resistance is near the $3,500 level or the 50% Fib retracement level of the downward move from the $3,649 swing high to the $3,350 low. There is also a solid bearish trend line forming with resistance near $3,500 on the hourly chart of the ETH/USD pair.
A bullish breakout above the $3,500 resistance could push the price higher. The next major resistance is at $3,580, above which the price could gain momentum and rise towards the $3,650 level.
A clear move above the $3,650 level could send Ether towards the $3,720 resistance level. Any further gains could send Ether towards the $3,800 resistance area.
Breaking the downside in ETH?
If Ethereum fails to break above the $3,500 resistance level, it may continue to move lower. Initial support on the downside is near $3,380. The first major support is $3,350.
A clear move below the $3,350 support could push the price towards $3,250. Any further losses could push the price towards the $3,120 level in the near term.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Major Support Level – $3,350
Major resistance level – $3,500