Ethereum price started a downward correction from the USD 3,500 resistance zone. ETH fell below $3,440 and could struggle to stay above $3,380.
- Ethereum corrects gains from the $3,500 zone.
- The price is trading above USD 3,400 and the 100-hourly Simple Moving Average.
- There was a break below a connecting bullish trendline with support at $3,420 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to decline further if a close occurs below the $3,350 support.
Ethereum price retreats from $3,500
Ethereum price started a downward correction from the USD 3,500 resistance zone. ETH fell below the USD 3,450 and USD 3,440 support levels and entered a short-term bearish zone like Bitcoin.
There was a break below a connecting bullish trendline with support at $3,420 on the hourly chart of ETH/USD. The pair even peaked below $3,400 and the 23.6% Fib retracement level of the upward move from the $3,048 swing low to the $3,516 high.
Ethereum is now trading above $3,380 and the 100-hourly Simple Moving Average. If the price remains above the 100-hour Simple Moving Average, another increase can be attempted. On the upside, the price is facing resistance around the $3,440 level.
The first major resistance is around the $3,450 level. The next major hurdle is near the USD 3,500 level. A close above the $3,500 level could send Ether towards the $3,550 resistance. The next major resistance is near USD 3,620. An upside break above the USD 3,620 resistance could send the price higher towards the USD 3,750 resistance zone in the coming days.
More disadvantages of ETH?
If Ethereum fails to clear the USD 3,440 resistance, it could continue falling. Initial downside support is near $3,400 and the 100-hour Simple Moving Average. The first major support is near the $3,350 zone.
A clear move below the $3,350 support could push the price towards $3,280 and the 50% Fib retracement level of the upward move from the $3,048 swing low to the $3,516 high. Any further losses could send the price towards the USD 3,200 support level in the near term. The next major support is at USD 3,150.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $3,350
Major resistance level – $3,440
