Credit: Original article published by newsbtc.

Ethereum is holding the key $3,120 support zone against the US Dollar. ETH price is consolidating and it seems like it could soon clear the $3,500 resistance zone.

  • Ethereum is holding the ground above the $3,120 and $3,200 support levels.
  • The price is still well below the $3,600 level and the 100 hourly simple moving average.
  • There was a break above a key bearish trend line with resistance near $3,380 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely forming a double bottom pattern near the $3,125 zone.

Ethereum Price Shows Positive Signs

Ethereum extended its decline below $3,500, but it remained stable above the $3,120 zone. ETH made two attempts to clear the $3,120 and $3,100 support levels, but the bears failed.

It seems like the price is forming a double bottom pattern near the $3,125 zone, similar to bitcoin. The recent low was near $3,127 before the price started a decent recovery. It broke the $3,300 resistance level. Ether climbed above the 23.6% Fib retracement level of the recent drop from the $3,885 swing high to $3,127 low.

There was also a break above a key bearish trend line with resistance near $3,380 on the hourly chart of ETH/USD. However, the pair is still well below the $3,600 level and the 100 hourly simple moving average.

Source: ETHUSD on TradingView.com

An immediate resistance is near the $3,450 level. The first major resistance is near the $3,500 level. It is close to the 50% Fib retracement level of the recent drop from the $3,885 swing high to $3,127 low. If the mentioned double bottom pattern is valid, the price is likely to surge above $3,500.

The next stop for the bulls could be $3,600 or the 100 hourly simple moving average, where the bears might take a stand.

More Losses in ETH?

If Ethereum fails to continue higher above the $3,450 and $3,500 resistance levels, it could start another decline. An initial support on the downside is near the $3,350 level and the broken trend line.

The first key support is near the $3,300 level. The main support is now forming near the $3,125 level. If there is a downside break below the $3,125 zone, the price could decline towards the $3,000 support.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving into the bullish zone.

Hourly RSIThe RSI for ETH/USD is now close to the 50 level.

Major Support Level – $3,300

Major Resistance Level – $3,500

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

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