Ethereum price started a downside correction below the $3,150 zone. ETH is now consolidating near $3,120 and might attempt a fresh increase.
- Ethereum started a short-term downside correction below the $3,150 zone.
- The price is trading below $3,200 and the 100-hourly Simple Moving Average.
- There is a short-term contracting triangle forming with resistance at $3,120 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it remains stable above the $3,040 zone.
Ethereum Price Eyes Fresh Increase
Ethereum price failed to start a fresh increase above the $3,250 zone and started a downside correction like Bitcoin. ETH declined below the $3,150 and $3,120 support levels.
The bears even pushed the price below the $3,040 zone. It tested the $3,000 support zone. A low was formed at $3,016 and the price is now consolidating losses. It climbed above the 23.6% Fib retracement level of the downward move from the $3,340 swing high to the $3,016 low.
Ethereum price is now trading below $3,200 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,120 level. There is also a short-term contracting triangle forming with resistance at $3,120 on the hourly chart of ETH/USD.
The first major resistance is near the $3,180 level or the 50% Fib retracement level of the downward move from the $3,340 swing high to the $3,016 low. The main resistance is now forming near $3,220.
A clear move above the $3,220 resistance might send the price toward the $3,320 resistance. An upside break above the $3,320 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,450 resistance zone.
Another Decline In ETH?
If Ethereum fails to clear the $3,320 resistance, it could start another decline. Initial support on the downside is near the $3,060 level. The first major support sits near the $3,040 zone.
A clear move below the $3,040 support might push the price toward $2,980. Any more losses might send the price toward the $2,920 support level in the near term. The next key support sits at $2,880.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $3,040
Major Resistance Level – $3,120
Source: NewsBTC.com
