Ethereum price has struggled to recover above the $3,420 resistance area. ETH is consolidating and could go lower again if there is a move below $3,320.
- Ethereum is struggling to find momentum to move above the $3,420 area.
- The price is trading below $3,400 and the 100-hour Simple Moving Average.
- There is a bearish connecting trend line forming with resistance near $3,400 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair should clear the $3,400 and $3,425 resistance levels to continue higher.
Ethereum Price Faces Headwinds
Ethereum price started a positive wave of recovery above the $3,320 level. ETH even cleared the $3,350 level but bears were active near $3,420. A high was formed at $3,426 and the price corrected gains similar to Bitcoin.
There was a move below the $3,380 level. The price dropped below the 23.6% Fib retracement level of the upward move from the swing low of $3,230 to the high of $3,426. Bulls are now trying to protect more downsides below the $3,320 level.
Ethereum is still trading below $3,400 and the 100-hour Simple Moving Average. On the other hand, the price is facing obstacles near the trend line and $3,400. There is also a bearish connecting trend line forming with resistance near $3,400 on the ETH/USD hourly chart.
The first major resistance is near the $3,420 level. The main resistance is near the $3,450 level. A close above the $3,450 level may send Ether to the $3,550 resistance.
The next key resistance is near $3,620. A break above $3,620 could send the price higher. The next hurdle sits at $3,680, above which the price may gain strength and rise to the $3,720 level. Any further gains could send Ether to the $3,880 resistance area.
Another Drop in ETH?
If Ethereum fails to clear the $3,400 resistance, it could start another decline. Initial support on the downside is near $3,350. The first major support sits near the $3,320 area and the 50% Fib retracement level of the upside from the $3,230 swing low to $3,426 high.
A clear move below the $3,320 support could push the price towards $3,250. Another loss could send the price to the $3,200 level in the near term.
Technical References
MACD per hour – MACD of ETH/USD is losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,320
Major Resistance Level – $3,400
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