By: Aayush Jindal
Ethereum gained pace and it broke the $3,800 resistance. ETH traded as high as $3,843 before it started a downside correction.
There was a dip below the $3,800 level. Ether price declined below the 23.6% Fib retracement level of the upward wave from the $3,520 swing low to $3,840 high. It tested the $3,700 support zone, where the bulls emerged and protected more downsides.
There is also a major bullish trend line forming with support near $3,680 on the hourly chart of ETH/USD. Ether price is now consolidating near the $3,800 level. It is also trading well above $3,720 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
An immediate resistance on the upside is near the $3,820 level. The first major resistance is near the $3,850 level. A proper move above the $3,850 level could stage another upward move. The next main resistance is near the $4,000 level.
If ethereum fails to continue higher above the $3,820 and $3,850 resistance levels, it could start a downside correction. An immediate support on the downside is near the $3,720 level. The next major support is now forming near the $3,700 zone. The trend line support at $3,680 also holds a lot of importance.
It is close to the 50% Fib retracement level of the upward wave from the $3,520 swing low to $3,840 high. A downside break below the $3,680 support zone could push the price further lower. In the stated case, the price is likely to decline towards the $3,600 level in the near term.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now placed above the 50 level.
Major Support Level – $3,680
Major Resistance Level – $3,850