Ethereum is holding the key $3,120 support zone against the US Dollar. ETH price is consolidating and it seems like it could soon clear the $3,500 resistance zone.

Ethereum is holding the ground above the $3,120 and $3,200 support levels.
The price is still well below the $3,600 level and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $3,380 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely forming a double bottom pattern near the $3,125 zone.

Ethereum Price Shows Positive Signs

Ethereum extended its decline below $3,500, but it remained stable above the $3,120 zone. ETH made two attempts to clear the $3,120 and $3,100 support levels, but the bears failed.

It seems like the price is forming a double bottom pattern near the $3,125 zone, similar to bitcoin. The recent low was near $3,127 before the price started a decent recovery. It broke the $3,300 resistance level. Ether climbed above the 23.6% Fib retracement level of the recent drop from the $3,885 swing high to $3,127 low.

There was also a break above a key bearish trend line with resistance near $3,380 on the hourly chart of ETH/USD. However, the pair is still well below the $3,600 level and the 100 hourly simple moving average.

Source: ETHUSD on TradingView.com

An immediate resistance is near the $3,450 level. The first major resistance is near the $3,500 level. It is close to the 50% Fib retracement level of the recent drop from the $3,885 swing high to $3,127 low. If the mentioned double bottom pattern is valid, the price is likely to surge above $3,500.

The next stop for the bulls could be $3,600 or the 100 hourly simple moving average, where the bears might take a stand.

More Losses in ETH?

If Ethereum fails to continue higher above the $3,450 and $3,500 resistance levels, it could start another decline. An initial support on the downside is near the $3,350 level and the broken trend line.

The first key support is near the $3,300 level. The main support is now forming near the $3,125 level. If there is a downside break below the $3,125 zone, the price could decline towards the $3,000 support.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving into the bullish zone.

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

Major Support Level – $3,300

Major Resistance Level – $3,500

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