Ethereum price spiked above the $3,000 resistance before the bears emerged. ETH is correcting gains but declines could be limited below the $2,865 support.
- Ethereum struggled to stay above the $3,000 level and corrected lower.
- The price is trading above $2,900 and the 100 hourly simple moving average.
- A connecting bearish trend line is forming with resistance at $2,950 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new rise unless the bears push the price below $2,865.
Ethereum price corrects downwards
Ethereum price extended its rally above the $3,000 resistance zone. However, the bears were active above the $3,000 resistance. A new multi-week high forms near $3,032 and the price started a downward correction, like Bitcoin.
There was a move below the $3,000 and $2,950 levels. The bulls are now active above the $2,865 support. A low is formed near $2,865 and the price is now attempting a fresh rise. There was a move above the 50% Fibonacci retracement level of the recent drop from the high of $3,032 to the low of $2,865.
Ethereum is now trading above $2,900 and the 100 hourly simple moving average. The immediate resistance on the upside is near the $2,950 level. There is also a connecting bearish trend line forming with resistance at $2,950 on the hourly chart of ETH/USD.
The first major resistance is near the $2.975 level or the 61.8% Fibonacci retracement level of the recent decline from the high of $3.032 to the low of $2.865.
Source: ETHUSD on TradingView.com
The next major resistance is near $3,000, above which the price could rise and test the $3,065 resistance zone. If there is a move above the $3,065 resistance, Ether could even rise towards the $3,185 resistance. Any additional winnings could require a test of $3,220.
More losses on ETH?
If Ethereum fails to overcome the $2,975 resistance, it could start another downward correction. Initial support on the downside is near the $2,900 level and the 100 hourly simple moving average.
The first major support is near the $2,865 level. The next key support could be the $2,820 area. A clear move below the $2,820 support could send the price towards $2,740. Any further losses could send the price towards the $2,720 level in the coming sessions.
Technical Indicators
MACD hourly – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now near the 50 level.
Main Support Level: $2,900
Main Resistance Level: $2,975
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