Ethereum Price Stabilizes at Support—What's Next for Traders?

Ethereum Price Finds Balance at Support

Ethereum's price has initiated a significant increase beyond the $3,350 resistance level. Currently, ETH is consolidating its gains while maintaining essential support at $3,280.

Key Takeaways:

Ethereum experienced a downward correction after rising to $3,400.
The price remains above $3,280 and the 100-hour Simple Moving Average.
A bullish trend line is forming with support at $3,280 on the hourly ETH/USD chart (data via Kraken).
Staying above the $3,280 area could lead to further increases.

Stability Above Support

Ethereum has stayed strong above $3,300 and has begun to make upward movements, similar to Bitcoin. The ETH price surged past the $3,320 and $3,350 resistance levels, reaching a high of $3,402 before undergoing a slight correction. During this pullback, the price dipped below $3,320, crossing the 23.6% Fibonacci retracement level from the recent rally that started at the swing low of $3,060 to the peak of $3,402.

Currently, Ethereum's price is trading above $3,280 and the 100-hour Simple Moving Average. Additionally, a bullish trend line is emerging with support at $3,280 on the hourly ETH/USD chart.

Ethereum Price
Source: ETHUSD on TradingView.com

If the bulls can fend off significant losses below $3,280, there is potential for the price to rally again. The immediate resistance level is approximately $3,320, with the first key resistance at around $3,350 and the next significant barrier near $3,385. A decisive move above the $3,385 level could propel the price towards the $3,450 mark, and a breakout above this region may lead to further gains, possibly climbing to $3,500 or even $3,550 in the near future.

Possibility of a Downside Move

Should Ethereum fail to overcome the $3,320 resistance, there may be a fresh decline. The initial support level is around $3,280, where the trend line is positioned. The first major support lies near the $3,260 area, close to the 100-hour SMA.

A significant dip below the $3,260 support could push the price down towards the $3,220 support and the 50% Fibonacci retracement level from the $3,060 swing low to the $3,402 peak. Further declines could see the price test the $3,150 range.

Technical Indicators:

Hourly MACD: The MACD for ETH/USD is showing a loss of momentum within the bullish zone.
Hourly RSI: The RSI for ETH/USD is currently below the 50 mark.

Major Support Level: $3,280
Major Resistance Level: $3,385