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Ethereum Price Hints at Downside Correction: Will Support Hold?

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Ethereum price started a downward correction from the $3,450 area. ETH is now consolidating and facing hurdles near the $3,250 resistance.

  • Ethereum has started a short-term bearish correction from the $3,450 area.
  • The price is trading above the $3,120 level and the 100 hourly simple moving average.
  • There is a solid bearish trend line forming with resistance at $3,240 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue rising if it remains stable above the $3,120 area.

Ethereum price support

Ethereum price started a new increase above the $3,1200 resistance level like Bitcoin. ETH managed to rise above the $3,220 and $3,320 resistance levels to move further into positive territory.

It even rose above the $3,400 level and traded to a new monthly high. A high was formed at $3,445 before there was a slight pullback. The price fell below the $3,320 and $3,250 support levels. The bottom was formed at $3,124 and the price is now consolidating.

Ethereum price is now trading above $3,120 and the 100 hourly simple moving average. On the upside, the price appears to be facing hurdles near the $3,230 level or the 50% Fib retracement level of the recent decline from the $3,340 swing high to the $3,124 low.

There is also a solid downtrend line forming with resistance at $3,240 on the hourly chart of the ETH/USD pair. The first major resistance is near the $3,260 level. The main resistance is now forming near $3,320. A clear move above the $3,320 resistance could send the price towards the $3,450 resistance.

source: ETHUSD on TradingView.com

A bullish break above the $3,450 resistance may require further gains in the coming sessions. In the mentioned case, the Ether price may rise towards the $3,550 resistance area.

More losses in ETH?

If Ethereum fails to break above the $3,250 resistance level, it could start a downward correction. Initial support on the downside is near the $3,150 level. The first major support is near the $3,120 area.

A clear move below the $3,120 support could push the price towards $3,050. Any further losses may send the price towards the $3,000 support level in the near term. The next major support is at $2,880.

Technical indicators

MACD per hourThe MACD indicator for ETH/USD is losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 area.

Major Support Level – $3,120

Major resistance level – $3,250

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