TA: Ethereum poised for another rally to $3,500: Recovery is not over yet

Ethereum started a downside correction from $3,400/USD. ETH price is holding the $3,250 support and is poised for fresh gains above the $3,320 resistance.

  • Ethereum started a downside correction from the $3,400 resistance zone.
  • The price is above $3,250 and the 100 hourly simple moving average.
  • There was a break above a major bullish trend line with support near $3,300 on the hourly chart of ETH/USD (data feed via Kraken).
  • If it holds above the $3,250 support area, the pair is likely to start a fresh advance.

Ethereum price corrects lower

Ethereum starts to rise strongly $3,320 resistance zone.ETH even broke above the $3,400 resistance zone and the 100 hourly simple moving average but showed no momentum.

A high was formed near $3,412 and the price is now correcting gains. Ether price fell below the $3,320 support. There was a break below the 23.6% Fib retracement level of the key gain from the $2,931 swing low to $3,412 high.

Additionally, there was a break below a major bullish trend line with support near $3,300 on the hourly chart of ETH/USD.It is now trading above $3,250, while 100 hourly simple moving average.

Source: ETHUSD on TradingView.com

On the upside, immediate resistance lies near $3,300. The first major resistance is near $3,320. A clear break above $3,320 could start another rise in the near term. The next major resistance is near $3,400, above which ether price could test $3,480. Any more gains could push the price towards the $3,550 level in the near term.

ETH’s Dips are limited?

If Ethereum fails to start a fresh rise above $3,320, it could continue to decline. Initial support on the downside is near $3,250. The first key support is now forming near $3,175.

It is near the 50% Fib retracement level of the key gain from the $2,931 swing low to $3,412 high. A break below the $3,175 level could push the price towards the $3,115 area. Any more losses could lead to prices approaching $3,000.

Technical indicators

Hourly MACDThe MACD for ETH/USD is slowly losing pace in the bearish zone.

Hourly RSIThe RSI for ETH/USD is above the 50 level.

Major Support – $3,250

Major Resistance – $3,320

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