Ethereum climbed to a new weekly high above $3,250 against the US Dollar. ETH price is correcting gains, but it might find support near $3,150.
Ethereum started a downside correction after it spiked above the $3,250 level.
The price is still trading above $3,150 and the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $3,150 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above $3,150 and $3,100 to start another increase in the near term.
Ethereum Price Eyes More Upsides
Ethereum remained strong and extended increase above the $3,200 level. ETH even climbed above the $3,250 level and settled well above the 100 hourly simple moving average.
A high was formed near the $3,272 and the price is now correcting gains. It is trading below the $3,200 support level. Ether corrected lower below the 23.6% Fib retracement level of the recent increase from the $3,028 swing low to $3,272 high.
However, the price is still trading above $3,150 and the 100 hourly simple moving average. Besides, there is a major bullish trend line forming with support near $3,150 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
An immediate resistance on the upside is near the $3,220 level. The first major resistance is near the $3,220 level. A successful close above $3,250 might start another increase. In the stated case, the price could surpass the $3,280 and $3,300 levels. The next major stop for the bulls may possibly be near the $3,400 level.
Dips Limited in ETH?
If ethereum fails to continue higher above $3,220 or $3,250, it could start a downside correction. An initial support on the downside is near the $3,150 level and the trend line zone.
The trend line is also near the 50% Fib retracement level of the recent increase from the $3,028 swing low to $3,272 high. A downside break below the trend line support might push the price towards the 100 hourly SMA. The next major support is near the $3,050 level, below which there is a risk of a larger decline.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is just below the 50 level.
Major Support Level – $3,150
Major Resistance Level – $3,250
