Ethereum price has shown signs of recovery after dropping to the $3,230 zone. It managed to climb above $3,350, but is currently facing strong resistance at $3,420.
The recent upside correction in Ethereum started from the $3,240 support level. However, the price is still trading below $3,420 and the 100-hourly Simple Moving Average. A key bearish trend line is forming with resistance near $3,410 on the hourly chart of ETH/USD.
For Ethereum to continue higher, it must surpass the $3,420 and $3,450 resistance levels. The price extended losses below $3,350 but found support at $3,240 before starting a recovery wave. The bulls managed to push the price above $3,350 and even above the 61.8% Fib retracement level of the recent downward move.
Despite the positive momentum, Ethereum is facing strong resistance near $3,420. The first major resistance is at $3,450, followed by $3,520 and $3,550. A break above $3,550 could lead to further gains towards $3,620 and potentially $3,650.
On the downside, if Ethereum fails to clear the $3,420 resistance, it may see another decline. Initial support is at $3,375, with a major support level at $3,350. Further losses could push the price towards $3,280 and $3,240.
In terms of technical indicators, the MACD for ETH/USD is losing momentum in the bullish zone, while the RSI is above the 50 zone. The major support level is at $3,300, with resistance at $3,420.