Ethereum price spiked above the USD 3,000 resistance before the bears appeared. ETH corrects gains, but declines may be limited below the USD 2,865 support.
- Ethereum struggled to stay above the USD 3,000 level and corrected lower.
- The price is trading above $2,900 and the 100-hourly Simple Moving Average.
- A connecting bearish trendline 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 lower
Ethereum price extended its rally above the USD 3,000 resistance zone. However, the bears were active above the USD 3,000 resistance. A new multi-week high is formed around $3,032 and the price started a downward correction just like Bitcoin.
There was a move below the USD 3,000 and USD 2,950 levels. The bulls are now active above the USD 2,865 support. A low is formed near USD 2,865 and the price is now trying to make a new increase. There was a move above the 50% Fib retracement level from the recent decline from the $3,032 swing high to the $2,865 low.
Ethereum is now trading above $2,900 and the 100-hour Simple Moving Average. The immediate resistance on the upside is near the $2,950 level. A bearish trendline is also 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% Fib retracement level of the recent decline from the $3,032 swing high to the $2,865 low.
Source: ETHUSD on TradingView.com
The next major resistance is near USD 3,000, above which the price could rise and test the USD 3,065 resistance zone. If there is a move above the USD 3,065 resistance, Ether could even rise towards the USD 3,185 resistance. Any gains could require a $3,220 test.
Lose more in ETH?
If Ethereum fails to clear the USD 2,975 resistance, it could start another downside correction. Initial downside support is near the $2,900 level and the 100-hour Simple Moving Average.
The first major support is near the $2,865 level. The next major support could be the $2,820 zone. A clear move below the USD 2,820 support could send the price towards USD 2,740. Any further losses could send the price towards the USD 2,720 level in the coming sessions.
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 near the 50 level.
Major Support Level – $2,900
Major resistance level – $2,975
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