Ethereum price started a downside correction from the $3,500 resistance. ETH is consolidating above $3,120 and facing several obstacles.
- Ethereum failed to gain momentum for the close above $3,500 and recovered the gains.
- The price is trading below $3,320 and the 100-hour simple moving average.
- There is a short-term connecting bearish trend line with resistance at $3,380 on the hourly chart of ETH/USD (data feed by Kraken).
- The pair may initiate another rise if it clears the $3,300 resistance level.
Ethereum price drops to support
Ethereum price started a nice upward move above the $3,320 level but the upside was relatively limited. Bitcoin. ETH failed to gain momentum close above $3,500 and recovered the gains.
There was a move below the $3,320 and $3,300 support levels. A low was made at $3,141 and the price is now consolidating losses. There was a slight rise above the $3,200 level. The price climbed above the 23.6% Fib retracement level of the recent decline from the $3,445 swing high to the $3,141 low.
Ethereum price is now trading below $3,280 and 100-hour simple moving average. On the upside, the price seems to be facing resistance near the $3,240 level. The first major resistance is near the $3,300 level or the 50% Fib retracement level of the recent decline from the $3,445 swing high to the $3,141 low.
Key resistance is now forming near $3,380. There is also a short-term connecting bearish trend line with resistance at $3,380 on the hourly chart of ETH/USD. A clear move above the $3,380 resistance could send the price towards the $3,450 resistance.
An upside break above the $3,450 resistance could call for further gains in the coming sessions. In the mentioned case, Ether could move towards the $3,500 resistance zone or even up to $3,550 in the near term.
More losses in ETH?
If Ethereum fails to clear the $3,300 resistance, it could initiate another decline. Initial support on the downside is near the $3,150 level. The first major support sits near $3,120.
A clear move below the $3,120 support could push the price towards the $3,050 support. Any further losses could send the price towards the $3,020 support level in the near term. The next major support sits at $3,000.
Technical indicators
Hourly MACD – MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Main support level – $3,120
Key resistance level – $3,300
