Ethereum price rebounds but lacks strong bullish momentum

Ethereum price attempts a further increase above the $3,450 resistance zone. ETH needs to settle above $3,550 to continue rising in the near term.

• Ethereum has been slowly rising above the $3,450 area.
• Price is trading above $3,450 and the 100 hourly simple moving average.
• There was a break above a key bearish trend line with resistance near $3,415 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair needs to break through the resistance levels of $3,520 and $3,550 to continue rising.

Ethereum price faces resistance

Ethereum price has started a decent recovery wave above the $3,400 level. ETH even crossed the $3,420 level to enter a short-term positive zone as Bitcoin.

There was a break above a key bearish trend line with resistance near $3,415 on the hourly chart of ETH/USD. The duo even cleared the $3,500 Resistance ZoneA high was reached at $3,516 and the price is now consolidating its gains.

There was a move below the $3,500 level, but the price remained above the 23.6% Fibonacci retracement level of the upward move from the $3,350 low to $3,350 high. $3,516.

Ethereum is trading above $3,450 and the 100 hourly simple moving average. The current price development is positive and calls for further increases. On the upside, the price faces resistance near the $3,500 level. The first major resistance lies near the $3,520 level.

Source: ETHUSD on TradingView.com

The next major hurdle is near the $3,550 level. A close above the $3,550 level could send Ether towards the $3,650 resistance. The next key resistance is near $3,720. An upside break above the $3,720 resistance could push the price higher. Any further gains could send Ether towards the $3,880 resistance zone.

Are downsides limited in ETH?

If Ethereum fails to break the $3,550 resistance, it could trigger a downside correction. The initial support on the downside is near $3,480. The first major support is near the $3,440 area and the 50% Fibonacci retracement level of the upward move from the $3,350 low to $3,516 high.

A sharp move below the $3,420 support could push the price towards $3,350. Any further losses could push the price towards the $3,320 level in the near term.

Technical indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $3,420

Major Resistance Level – $3,550

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