Ethereum Price Faces Resistance Near $3,500, Must Clear $3,550 to Continue Higher

Ethereum price started a decent recovery wave above the $3,400 level. ETH even cleared the $3,420 level to move into a short-term positive zone

Ethereum price is showing positive signs above the $3,400 level. ETH could attempt a fresh increase if it settles above $3,450.

Ethereum Price Analysis

Ethereum price recovered well above the $3,400 level. ETH even surpassed the $3,420 level to enter a short-term bullish zone.

There was a break above a key bearish trend line with resistance near $3,415 on the hourly chart of ETH/USD. The pair even cleared the $3,500 resistance level. A high was formed at $3,516 and the price is currently consolidating gains.

The price did move below the $3,500 level, but it remained above the 23.6% Fib retracement level of the upward move from the $3,350 swing low to the $3,516 high.

Ethereum is trading above $3,450 and the 100-hourly Simple Moving Average. The current price action is positive and suggests that there could be more upsides. On the upside, the price is facing resistance near the $3,500 level. The first major resistance is around the $3,520 level.

The next major hurdle is near the $3,550 level. A close above the $3,550 level might push ETH toward the $3,650 resistance. The next key resistance is around $3,720. An upside break above the $3,720 resistance might send the price higher. Any further gains could send ETH toward the $3,880 resistance zone.

Are Dips Limited In ETH?

If Ethereum fails to clear the $3,550 resistance, it could begin a downside correction. Initial support on the downside is near $3,480. The first major support sits around the $3,440 zone and the 50% Fib retracement level of the upward move from the $3,350 swing low to the $3,516 high.

A clear move below the $3,420 support might push the price toward $3,350. Any further losses might send the price toward the $3,320 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $3,420

Major Resistance Level – $3,550