Ethereum Sets New ATH, Why Dips Remain Attractive In Near-Term

Ethereum extended its rally and it traded to a new all-time high near $3,550 against the US Dollar. ETH price is correcting gains, but it is likely to remain well bid near $3,400.

Ethereum extended its rally above $3,500 and it traded to a new all-time high near $3,550.
The price is now trading well above $3,400 and the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $3,390 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is correcting lower, but the bulls are likely to remain active near $3,400.

Ethereum Price Gains Traction
Ethereum formed a new support base above the $3,250 and started a fresh increase. ETH outpaced bitcoin and it broke the $3,400 resistance to start a fresh rally.
It even climbed above the $3,500 level and traded to a new all-time high near $3,550. It is now trading well above $3,400 and the 100 hourly simple moving average. Recently, there was a downside correction from the $3,551 high and the price traded below $3,500.
Ether traded below the 23.6% Fib retracement level of the recent wave from the $3,289 swing low to $3,551 high. On the downside, the first major support is near the $3,420 level.

Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the recent wave from the $3,289 swing low to $3,551 high is also near the $3,420 level. The main support is now forming near the $3,400 level. There is also a major bullish trend line forming with support near $3,390 on the hourly chart of ETH/USD. Any more losses might call for a drop towards the $3,250 support zone in the near term.
More Upsides in ETH?
If Ethereum remains stable above the $3,400 zone, it could start a fresh increase. An immediate resistance on the upside is near the $3,500 level.
A successful close above the $3,500 level could lead ether price towards the $3,550 level. The next key resistance is near $3,620, above which the bulls might aim a test of the $3,750 level in the coming days.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is correcting lower and it is approaching the 50 level.
Major Support Level – $3,400
Major Resistance Level – $3,550

Jimmy Steele

I’m known as one of the best Crypto Authors in the market. My work has been featured in numerous publications, including The Wall Street Journal, Forbes, and Barron’s. I’m a regular contributor to CoinDesk and have been a guest on CNBC, Fox Business, and Bloomberg TV.