TA: Ethereum Corrects Gains, Here’s What Could Trigger Fresh Rally

Ethereum extended its rally and it traded to a new all-time high above $3,520 against the US Dollar. ETH price is correcting gains, but it is likely to start a fresh rally above $3,400.

  • Ethereum extended its rally above $3,500 and it traded to a new all-time high near $3,525.
  • The price is now trading well above $3,200 and the 100 hourly simple moving average.
  • There is a crucial breakout pattern forming with support near $3,260 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could either rally again above $3,400 or it might dive to test the $3,000 support.

Ethereum Price Signaling Fresh Rally

Ethereum remained in a strong uptrend above the $3,200 level. ETH outpaced bitcoin and it climbed above the $3,450 resistance zone to move further into a positive zone.

It traded to a new all-time high near $3,528 and it settled nicely above the 100 hourly simple moving average. Ether price is now correcting gains and it traded below the $3,400 support. There was also a spike below the $3,250 level, but the bulls defended the $3,200 support.

A low is formed near $3,211 and the price is now consolidating. It recovered above the $3,300 and $3,350 levels. There was a break above the 50% Fib retracement level of the recent decline from the $3,437 high to $3,211 low.

Ethereum Price

Source: ETHUSD on TradingView.com

However, the price is struggling to gain pace above $3,380. It failed to clear the 76.4% Fib retracement level of the recent decline from the $3,437 high to $3,211 low. There is also a crucial breakout pattern forming with support near $3,260 on the hourly chart of ETH/USD.

A successful break above the triangle resistance and $3,380 could start a fresh rally. The next major hurdle for the bulls could be $3,450 or $3,500.

More Upsides in ETH?

If Ethereum fails to climb above $3,380, it could decline further. An immediate support on the downside is near the $3,260 level and the triangle lower trend line.

If there is a downside break below the triangle trend line, the price might even trade below $3,200. In the stated case, ether price may possibly decline towards the $3,000 support.

Technical Indicators

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

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

Major Support Level – $3,260

Major Resistance Level – $3,380

This post was originally published on www.newsbtc.com