TA: Ethereum Forms Bullish Pattern, Why ETH Could Continue Higher
Ethereum tested the $3,380 zone before it corrected lower against the US Dollar. ETH price is still trading above $3,300 and it might attempt another upside break.
- Ethereum started a fresh increase above the $3,300 and $3,320 resistance levels.
- The price is now trading above $3,250 and the 100 hourly simple moving average.
- There is a key bullish flag forming with resistance near $3,340 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue higher if there is a clear break above $3,340 and $3,350.
Ethereum Price Consolidates Gains
Ethereum settled above the $3,300 resistance and climbed further higher. ETH price even traded above $3,350, but it failed to clear $3,380. Recently, there was a downside correction below $3,350, similar to bitcoin.
There was a break below the 23.6% Fib retracement level of the upward move from the $3,130 swing low to $3,380 high. It is now trading above $3,250 and the 100 hourly simple moving average.
There is a key bullish flag forming with resistance near $3,340 on the hourly chart of ETH/USD. On the upside, an initial resistance is near the $3,340 and $3,350 levels. A clear break above the channel resistance and $3,350 might call for more gains.
Source: ETHUSD on TradingView.com
The next key resistance is now forming near the $3,280 level. Any more gains may possibly call for a move towards the $3,500 level in the near term. An intermediate resistance may possibly be near the $3,420 level.
More Losses in ETH?
If ethereum fails to continue higher above the $3,340 and $3,350 resistance levels, it could start a fresh downside correction. An immediate support on the downside is near the $3,300 level. The key support is now forming near the $3,250 zone and the 100 hourly simple moving average.
It is close to the 50% Fib retracement level of the upward move from the $3,130 swing low to $3,380 high. A downside break below the $3,250 support zone could push the price further lower. The next major support could be $3,200, below which the price could revisit the $3,130 and $3,120 support levels.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still above the 50 level.
Major Support Level – $3,250
Major Resistance Level – $3,350
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