Ethereum found bids near the USD 3,140 zone and corrected higher against the US dollar. The ETH price needs to clear $3,325 and the 100-hour SMA to start a decent rise.

Ethereum traded as low as USD 3,143 and it is currently correcting higher. The price is now trading below $3,300 and the 100 hourly simple moving average. A rising channel is forming in the near term with resistance near $3,300 on the ETH/USD hourly chart (data feed via Kraken). The pair needs to gain $3,300 and the 100 hourly SMA to gain bullish momentum.

Ethereum Price Eyes Recovery

Ethereum was trading as low as $3,143 before the bulls appeared. ETH established a base above USD 3,150 and started some significant upward movement.

There was a break above the $3,200 resistance level. Ether price was able to clear the 23.6% Fib retracement level from the key decline from the $3,550 swing high to $3,143 low. However, it is still trading below $3,300 and the 100 hourly simple moving average.

On the upside, initial resistance is seen near the $3,300 level. A short term bullish channel is also forming with resistance near $3,300 on the ETH/USD hourly chart.

The next major resistance is near the $3,325 level and the 100 hourly simple moving average. A clear move above the $3,325 level could even push the price above the 50% key decline Fib retracement level from the $3,550 swing high to $3,143 low.

Source: ETHUSD on TradingView.com

If ether price moves above the $3,325 and $3,345 resistance levels, it could begin a steady rise. In the mentioned case, the price could rise above the $3,400 zone. The next major barrier is near the $3,450 level and a connecting bearish trendline.

New Drop in ETH?

If ethereum fails to start a fresh rise above the $3,325 level, it could spark another significant drop. An initial support on the downside is near the $3,230 zone.

The next major support is near the $3,200 level. If there is a downward breach below the $3,200 support, the price could fall again. In the mentioned case, the price may even fall below the low of USD 3,143.

Technical indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.

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

Major Support Level – $3,200

Major Resistance Level – $3,325