Ethereum price has started a novel rally from the support zone at $3,350. ETH is outperforming Bitcoin and may rise further towards the resistance at $3,650.
- Ethereum is gaining momentum from the key support zone at $3,365.
- The price is above $3,450 and the 100-hour straightforward moving average.
- On the hourly chart, ETH/USD (data via Kraken) saw a break above a key bearish trend line with resistance near $3,460.
- The pair has formed a double bottom pattern and has gained momentum above the resistance at $3,500.
Ethereum price holds key support
Ethereum price remained favorable above the support zone at $3,350. ETH formed a base and started a novel rally after forming a double bottom pattern near $3,350 as discussed yesterday.
It outperformed Bitcoin and broke the resistance at $3,450. There has been a clear move above the 50% Fib retracement level, which is a downward move from the high of $3,650 to the low of $3,350. Additionally, there was a break above the key bearish trend line with resistance near $3,460 on the ETH/USD hourly chart.
Ethereum is currently trading above $3,450 and the 100-hour straightforward moving average. It is also showing positive signs of further gains above the $3,535 level. On the other hand, the price may face resistance near the $3,580 level or the 76.4% Fib retracement level for a downward move from the $3,650 high to the $3,350 low.
The first major resistance is near the $3,650 level. An upward break above the resistance at $3,650 could trigger a rally in the price. The next key resistance is at $3,720, above which the price may gain strength and rise to $3,750.
A clear move above the $3,750 level could push Ether towards the $3,880 resistance level. Any further gains could push Ether towards the $4,000 resistance zone in the coming days.
Another ETH drop?
If Ethereum fails to break through the resistance at $3,580, another decline could begin. Initial support on the downside is near $3,500. The first major pledge is $3,450.
A clear move below the support at $3,450 could push the price towards $3,350. Larger losses could push the price towards the $3,220 level in the near future.
Technical indicators
Hourly MACD – MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently above the 50 zone.
Main support level – USD 3,450
Major resistance level – $3,580
