Ethereum price has bounced back from the $3,500 area. ETH shows bullish signs and may soon aim to break the resistance area at $3,700.

Ethereum price has bounced back from the $3,500 area. ETH shows bullish signs and may soon aim to break the resistance area at $3,700.

  • Ethereum remains in positive territory and stays above the $3,500 area.

  • The price is trading above $3,620 and the 100-hour simple moving average.

  • On the ETH/USD hourly chart, a connected bearish trend line was broken, with resistance at $3,600.

  • If the $3,700 area is broken, the currency pair may start rising again.

Ethereum price failed to break the resistance area at $3,680 and corrected some gains like Bitcoin. ETH dropped below the support levels of $3,600 and $3,550. It even retested the support level at $3,500.

With a low formed at $3,505, the price is now attempting to rise again. Breaking through the levels of $3,600 and $3,620. The price has cleared the 76.4% Fibonacci retracement level moving down from the swing high of $3,760 to the low of $3,505.

Additionally, on the ETH/USD hourly chart, a connected bearish trend line was broken, with resistance at $3,600. Ethereum price is now trading above $3,600 and the 100-hour simple moving average.

On the positive side, the price seems to be facing resistance around $3,680. The first major resistance level is near $3,700 or around the 76.4% Fibonacci retracement level moving down from the swing high of $3,760 to the low of $3,505. Major resistance now forms around $3,750.

A significant break above the resistance level of $3,750 could push the price towards the resistance level of $3,880. An upward break above the resistance level of $3,880 may require more gains in the coming trading days. In such a case, Ether might rise to the resistance area of $4,000 or even $4,120.

Is ETH going to drop again?

If Ethereum fails to clear the resistance level of $3,700, it may begin to drop again. The initial support level on the downside is around $3,600. The first major support level is near the $3,550 area.

A significant drop below the support level of $3,550 could push the price toward the support level of $3,500. Any further loss may short-term push the price down to the support level of $3,420. The next key support level is at $3,350.

Technical indicators

Hourly MACD – The MACD for ETH/USD gains momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 area.

Key support level – $3,600

Key resistance level – $3,700