TA: Ethereum Remains Attractive, What Could Trigger More Upsides

Ethereum started consolidating above $3,700 against the US Dollar. ETH price is supported above $3,700 and it could continue to rise above the $3,850 resistance.

• Ethereum started a downside correction from the $3,850 resistance zone.
• The price is now trading well above $3,700 and the 100 hourly simple moving average.
• There is a major bullish trend line forming with support near $3,680 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could trade in a range, and it might rise further above $3,850.

Ethereum Price is Holding Gains

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.

Dips Limited in ETH?

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.

Technical Indicators

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