Ethereum Price Prints Bullish Pattern, Why Close Above $3,600 Is Critical

Ethereum price stayed above the $3,400 support zone. ETH is recovering losses, but it must clear $3,600 to continue higher in the near term.

• Ethereum extended its decline and tested the $3,400 support zone.
• The price is trading above $3,500 and the 100-hourly Simple Moving Average.
• There was a break above a connecting bearish trend line with resistance at $3,500 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could gain bullish momentum if it stays above the $3,500 support zone.

Ethereum Price Aims Higher

Ethereum price extended its decline below the $3,500 level. ETH even spiked below the $3,450 support before the bulls appeared. The price traded as low as $3,408 and recently started a recovery wave, like Bitcoin.

There was a move above the $3,500 resistance zone. The price climbed and tested the 50% Fib retracement level of the downward move from the $3,726 swing high to the $3,408 low. Besides, there was a break above a connecting bearish trend line with resistance at $3,500 on the hourly chart of ETH/USD.

Ethereum is now trading near $3,500 and the 100-hourly Simple Moving Average. Immediate resistance is near the $3,600 level or the 61.8% Fib retracement level of the downward move from the $3,726 swing high to the $3,408 low.

Source: ETHUSD on TradingView.com

The first major resistance is near the $3,650 level. The next key resistance sits at $3,725, above which the price might test the $3,780 level. The key hurdle could be $3,800, above which Ether could gain bullish momentum. In the stated case, the price could rise toward the $3,880 zone. If there is a move above the $3,880 resistance, Ethereum could even rise toward the $4,000 resistance.

Another Decline In ETH?

If Ethereum fails to clear the $3,600 resistance, it could start another decline. Initial support on the downside is near the $3,520 level.

The first major support is near the $3,500 zone. The next key support could be the $3,400 zone. A clear move below the $3,400 support might send the price toward $3,320. Any more losses might send the price toward the $3,240 level.

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 level.

Major Support Level – $3,520

Major Resistance Level – $3,600

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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• Source: https://www.newsbtc.com/analysis/eth/ethereum-price-bullish-pattern-3600/