Ethereum started a strong rally, shedding $ 3,500 against the US dollar. The ETH price even climbed above USD 3,800 and could continue to climb towards USD 4,000 in the next few days.
- Ethereum began a sharp surge above the USD 3,500 and USD 3,650 resistance levels.
- The price is now trading above $ 3,700 and the 100-hour simple moving average.
- A major bullish trendline is forming on the hourly chart of ETH / USD (data feed via Kraken) with support near USD 3,600.
- The pair could give way in the short term, but it could find bids near $ 3,680 or $ 3,620.
Ethereum price extends rally
Ethereum is still in a strong uptrend above the $ 3,500 pivot level. ETH gained pace and was able to beat the resistance level of $ 3,650. The price even topped $ 3,750 and was well above the 100-hour simple moving average.
Eventually there was a break above $ 3,800 and the price tested the $ 3,840 zone. A high is formed near $ 3,843 and the price is now correcting down. It was trading below the $ 3,800 level.
There was a break below the 23.6% fib retracement level of the move up from the low of $ 3,520 to the high of $ 3,843. Ether price is now consolidating near the $ 3,750 level. It also trades well over $ 3,700 and the 100-hour simple moving average.
Source: ETHUSD on TradingView.com
A major bullish trendline is also forming on the hourly chart of ETH / USD with support near USD 3,600. Immediate resistance to the upside is near the $ 3,800 mark. The first major resistance is near the $ 3,850 level. If there is a significant break above the $ 3,850 level, the price could accelerate towards the $ 3,900 level. The next major resistance is near the $ 4,000 mark.
Dips Limited at ETH?
If Ethereum fails to break above the USD 3,800 and USD 3,850 resistance levels, it could see a downward correction. Immediate support on the downside is near the $ 3,700 mark.
The next big support is now forming near the $ 3,680 zone. It is near the 50% Fib retracement level of the move up from the low of $ 3,520 to the high of $ 3,843. A break down below the $ 3,680 zone could move the price towards the trendline support at $ 3,600.
Hourly MACD – The MACD for ETH / USD is slowly losing pace in the upward zone.
Hourly RSI – The RSI for ETH / USD is corrected down from well above the 70 level.
Great level of assistance – $ 3,680
Great resistance level – $ 3,850