Ethereum price climbed to a new multi-month high above $3,500. ETH is correcting gains like Bitcoin and might find strong bids near the $3,250 zone.

• Ethereum extended its increase above the $3,500 resistance zone.
• The price is trading above $3,300 and the 100-hourly Simple Moving Average.
• There is a major bullish trend line forming with support at $3,260 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could correct lower, but dips might be limited below the $3,260 support zone.

Ethereum Price Eyes Fresh Increase

Ethereum price gained pace after it broke the $3,200 resistance zone, like Bitcoin. ETH cleared many hurdles near the $3,320 and $3,400 levels. Finally, it spiked above the $3,500 level.

A new multi-month high was formed near $3,515 before there was a downside correction. The price declined below the $3,420 and $3,400 levels. It even tested the 50% Fib retracement level of the upward wave from the $3,110 swing low to the $3,515 high.

Ethereum is now trading above $3,300 and the 100-hourly Simple Moving Average. There is also a major bullish trend line forming with support at $3,260 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the upward wave from the $3,110 swing low to the $3,515 high. Immediate resistance on the upside is near the $3,420 level. The first major resistance is near the $3,450 level. The next major resistance is near $3,500, above which the price might gain bullish momentum.

Source: If there is a move above the $3,500 resistance, Ether could even rally toward the $3,620 resistance. Any more gains might call for a test of $3,800.

Are Dips Supported In ETH?

If Ethereum fails to clear the $3,420 resistance, it could start a downside correction. Initial support on the downside is near the $3,310 level. The first major support is near the $3,260 zone or the trend line. The next key support could be the $3,250 zone. A clear move below the $3,250 support might send the price toward $3,120. Any more losses might send the price toward the $3,050 level. Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

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

Major Support Level – $3,260 Major Resistance Level – $3,420