- Ethereum started a major upside correction from the $2,880 zone.
- The price is now trading above $3,000 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $3,070 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must clear $3,080 and $3,100 to start a strong upward move.
Ethereum Price Recovers Losses
A low was formed near $2,880 and the price started a steady increase. There was a move above the $2,980 and $3,000 resistance levels. Ether price is now trading above $3,000 and the 100 hourly simple moving average.
A high is formed near $3,068 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the recent increase from the $2,880 swing low to $3,068 high. On the upside, an initial resistance is seen near the $3,070 level.
There is also a key bearish trend line forming with resistance near $3,070 on the hourly chart of ETH/USD. The next major resistance is near the $3,080 and $3,100 levels.
Source: ETHUSD on TradingView.com
A close above the $3,100 level might start a steady upward move in the near term. The next major resistance could be near the $3,150 or $3,220.
Fresh Decline in ETH?
If ethereum fails to gain pace above the $3,100 level, it could start a downside correction. An initial support on the downside is near the $3,020 zone and the 100 hourly simple moving average.
The next major support is near the $2,980 level. It is close to the 50% Fib retracement level of the recent increase from the $2,880 swing low to $3,068 high. If there is a downside break below the $2,980 support, the price could start another decline. In this scenario, there is a risk of a move towards the $2,880 level.
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $2,980
Major Resistance Level – $3,100