shutterstock 61673305 ub7zIP Ethereum Price Trims Gains, Are Dips Still Attractive In Near Term?

Ethereum Price Trims Gains, Are Dips Still Attractive In Near Term?

Ethereum price failed to continue higher above the $3,725 resistance zone. ETH trimmed gains and now consolidates near the $3,475 support.

Ethereum failed to climb higher above the $3,725 resistance level.
The price is trading near $3,500 and the 100-hourly Simple Moving Average.
There was a break below a key bullish trend line with support at $3,510 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if it stays above the $3,420 support zone.

Ethereum Price Faces Rejection

Ethereum price started a decent increase above the $3,550 resistance. ETH even cleared the $3,650 resistance zone, but the bears were active near $3,725. A high was formed at $3,726 and the price started a fresh decline, like Bitcoin.

There was a move below the $3,600 and $3,550 levels. There was a break below a key bullish trend line with support at $3,510 on the hourly chart of ETH/USD. The pair even spiked below the 50% Fib retracement level of the upward move from the $3,224 swing low to the $3,726 low.

Ethereum is now trading near $3,500 and the 100-hourly Simple Moving Average. Immediate resistance is near the $3,520 level. The first major resistance is near the $3,560 level. The next key resistance sits at $3,610, above which the price might test the $3,650 level.

Source: ETHUSD on TradingView.com

The main resistance is now near $3,725, above which Ether could gain bullish momentum. In the stated case, the price could rise toward the $3,800 zone. If there is a move above the $3,800 resistance, Ethereum could even rise toward the $4,000 resistance.

More Losses In ETH?

If Ethereum fails to clear the $3,610 resistance, it could continue to move down. Initial support on the downside is near the $3,475 level.

The first major support is near the $3,420 zone or the 61.8% Fib retracement level of the upward move from the $3,224 swing low to the $3,726 low. The next key support could be the $3,340 zone. A clear move below the $3,340 support might send the price toward $3,240. Any more losses might send the price toward the $3,120 level.

Technical Indicators

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

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

Major Support Level – $3,420

Major Resistance Level – $3,610

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