Ethereum Price Rallies 10%, Why Close Above $3,550 Is The Key

21 March 2024

Ethereum price started a recovery wave from the $3,050 zone. ETH is up over 10% and is now struggling to clear the $3,550 resistance zone.

Ethereum started a decent recovery wave from the $3,050 zone.
The price is trading above $3,350 and the 100-hourly Simple Moving Average.
There was a break above a major bearish trend line with resistance at $3,400 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to rise if it settles above the $3,550 resistance zone.

Ethereum Price Starts Recovery

Ethereum price extended its decline below the $3,350 and $3,200 levels, like Bitcoin. ETH even declined below the $3,150 support level before the bulls appeared. It tested the $3,050 zone.

A low was formed at $3,059 and the price is moving higher. There was a strong recovery wave above the $3,350 resistance. The price cleared the 50% Fib retracement level of the downward wave from the $3,675 swing high to the $3,059 low.

There was also a break above a major bearish trend line with resistance at $3,400 on the hourly chart of ETH/USD. Ethereum price is now trading above $3,400 and the 100-hourly Simple Moving Average.

On the upside, immediate resistance is near the $3,520 level or the 76.4% Fib retracement level of the downward wave from the $3,675 swing high to the $3,059 low. The first major resistance is near the $3,550 level. The next key resistance sits at $3,675, above which the price might gain bullish momentum.

Source: ETHUSD on TradingView.com

In the stated case, Ether could rally toward the $3,820 level. If there is a move above the $3,820 resistance, Ethereum could even rise toward the $4,000 resistance. Any more gains might call for a test of $4,080.

Another Decline In ETH?

If Ethereum fails to clear the $3,550 resistance, it could start another decline. Initial support on the downside is near the $3,380 level.

The first major support is near the $3,320 zone. The next key support could be the $3,220 zone. A clear move below the $3,220 support might send the price toward $3,150. Any more losses might send the price toward the $3,050 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bullish zone.

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

Major Support Level – $3,380

Major Resistance Level – $3,550

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