Ethereum Price Faces Crucial Test, Can ETH Clear This Hurdle To Kickstart Rally?

12 April 2024

Ethereum price is consolidating above the $3,450 support zone. ETH must clear $3,560 and $3,620 to start a fresh increase in the near term.

Ethereum is trading in a range above the $3,450 support zone.
The price is trading above $3,500 and the 100-hourly Simple Moving Average.
There is a new connecting bearish trend line forming with resistance at $3,550 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could gain bullish momentum if it stays above the $3,420 support zone.

Ethereum Price Eyes Upside Break

Ethereum price attempted another increase above the $3,550 resistance. ETH even climbed above $3,600, but the upsides were limited like Bitcoin. A high was formed at $3,614 before the price trimmed gains.

It declined below $3,500 and treaded as low as $3,476. The price is again recovering and moving above $3,500. There was a move above the 23.6% Fib retracement level of the recent decline from the $3,614 swing high to the $3,476 low.

Ethereum is now trading above $3,500 and the 100-hourly Simple Moving Average. Immediate resistance is near the $3,550 level or the 50% Fib retracement level of the recent decline from the $3,614 swing high to the $3,476 low. There is also a new connecting bearish trend line forming with resistance at $3,550 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

The first major resistance is near the $3,620 level. The next key resistance sits at $3,650, above which the price might test the $3,720 level. The key hurdle could be $3,750, above which Ether could gain bullish momentum. In the stated case, the price could rise toward the $3,820 zone. If there is a move above the $3,820 resistance, Ethereum could even rise toward the $4,000 resistance.

Another Rejection In ETH?

If Ethereum fails to clear the $3,550 resistance, it could start another decline. Initial support on the downside is near the $3,500 level.

The first major support is near the $3,475 zone. The next key support could be the $3,420 zone. A clear move below the $3,420 support might send the price toward $3,320. Any more losses might send the price toward the $3,240 level.

Technical Indicators

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

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

Major Support Level – $3,475

Major Resistance Level – $3,550

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