Ethereum Just Reversed and $3,700 is Imminent, Here’s Why

Ethereum gained pace and surpassed the $3,500 level against the US Dollar. ETH price is trading in a positive zone and it could rise further towards $3,700.

Ethereum started a fresh increase above the $3,500 resistance level.
The price is now trading above $3,400 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $3,450 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to rise as long as it is above the $3,400 support zone in the near term.

Ethereum Price Extends Rally
Ethereum started a steady increase above the $3,350 resistance zone. ETH was able to climb above the $3,450 level and the 100 hourly simple moving average.
The price even cleared the $3,500 zone. A high is formed near $3,539 and it is now correcting gains. Ether corrected lower below the $3,500 level. It is now trading near the 23.6% Fib retracement level of the recent increase from the $3,275 swing low to $3,339 high.
It is now consolidating near the $3,480 zone. There is also a key bullish trend line forming with support near $3,450 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $3,500 level. The first major resistance is near the $3,540 level.

Source: ETHUSD on TradingView.com
The next major resistance is near the $3,550 level, above which the price might accelerate towards $3,700. Any more gains could set the pace for a larger increase towards the $3,800 level in the near term.
Dips Supported in ETH?
If ethereum fails to continue higher above the $3,540 and $3,550 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $3,450 level.
The first key support is now forming near the $3,400 level. It is close to the 50% Fib retracement level of the recent increase from the $3,275 swing low to $3,339 high. Any more losses could lead ether price towards the $3,375 support zone and the 100 hourly simple moving average. The next major support could be near the $3,320 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is correcting lower towards the 50 level.
Major Support Level – $3,400
Major Resistance Level – $3,550

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