Ethereum
Is a double bottom model emerging?
Retesting Ethereum Price Support
Ethereum price moved lower again and retested the $3,365 support zone. ETH could begin a further rise towards $3,700 if it remains above $3,365.
- Ethereum still holds the key $3,365 support area.
- The price is trading below $3,550 and the 100 hourly simple moving average.
- A downtrend line is forming with resistance near $3,500 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could form a double bottom pattern and move higher towards the $3,700 resistance.
Ethereum Price Retests Key Support
Ethereum price failed to accelerate above the $3,580 and $3,650 resistance levels. ETH reacted downward as Bitcoin and fell below the $3,500 support. There was a clear move below $3,420, but the bulls were active again near $3,350.
A low formed near the $3,350 level and the price is again rising. There was a move above the $3,380 and $3,400 resistance levels. The price was able to cross the 23.6% Fibonacci retracement level of the downward move from the $3,649 high to $3,350 low.
Ethereum is now trading below $3,550 and the 100 hourly simple moving average. It looks like the price could form a double bottom pattern and move higher towards the $3,700 resistance. If there is a further rise, the price could face resistance near the $3,460 level.
The first major resistance is near the $3,500 level or the 50% Fibonacci retracement level of the downward move from the $3,649 high to $3,350 low. There is also a downtrend line forming with resistance near $3,500 on the ETH/USD hourly chart.
An upside break above the $3,500 resistance could send the price higher. The next key resistance lies at $3,580, above which the price could gain ground and reach the $3,650 level.
A sharp move above the $3,650 level could send Ether towards the $3,720 resistance. Any further gains could send Ether towards the $3,800 resistance zone.
ETH breaking down?
If Ethereum fails to breach the $3,500 resistance, it could continue to fall. Initial downside support is near $3,380. The first major support is $3,350.
A sharp move below the $3,350 support could push the price towards $3,250. Any further losses could push the price towards the $3,120 level in the near term.
Technical indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $3,350
Major Resistance Level – $3,500