Ethereum price started a downward correction from the $3,520 zone. ETH is stable above USD 3,420 and could attempt another rise in the near term.
- Ethereum started a downward correction after failing to cross the $3,520 zone.
- The price is trading above USD 3,420 and the 100-hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance near $3,470 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to overcome the USD 3,470 and USD 3,520 resistance levels to continue higher.
Ethereum price corrects lower
Ethereum price started a decent upward move above the USD 3,420 level. ETH has even reached the $3,450 level to move into a positive short-term zone like Bitcoin.
The price has even crossed the USD 3,500 resistance zone. It peaked at $3,516 and the price recently started a downward correction. There was a move below the USD 3,480 and USD 3,470 levels. The price fell below the 23.6% Fib retracement level of the upward move from the $3,350 swing low to the $3,516 high.
However, the bulls seem to be active near the $3,420 support zone. They protect the 50% Fib retracement level of the upward move from the $3,350 swing low to the $3,516 high.
Ethereum is trading above $3,420 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $3,470 level. A connecting bearish trendline is also forming with resistance around $3,470 on the hourly chart of ETH/USD.
The first major resistance is around the $3,500 level. The next major hurdle is near the USD 3,520 level. A close above the USD 3,520 level could send Ether towards the USD 3,550 resistance. The next major resistance is near USD 3,650. An upside break above the USD 3,650 resistance could push the price higher. Even more gains could send Ether towards the USD 3,720 resistance zone.
Are dips supported in ETH?
If Ethereum fails to clear the USD 3,470 resistance, it could continue falling. The initial downside support is near USD 3,435. The first major support is near the $3,420 zone.
A clear move below the USD 3,420 support could push the price towards USD 3,350. Any further losses could send the price towards the USD 3,320 level in the near term.
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 – $3,420
Major resistance level – $3,470
