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Ethereum price has started a downward correction below the $3,150 area. ETH is now consolidating near $3,120 and may attempt a new rally.
- Ethereum has started a short-term bearish correction below the $3,150 area.
- The price is trading below the $3,200 level and the 100 hourly simple moving average.
- There is a short-term contracting triangle forming with resistance at $3,120 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new increase if it remains stable above the $3,040 area.
Ethereum price is looking forward to a new increase
Ethereum price failed to start a new increase above the $3,250 area and started a downward correction like Bitcoin. ETH fell below the $3,150 and $3,120 support levels.
The bears even pushed the price below the $3,040 area. It tested the $3,000 support area. The low was formed at $3,016 and the price is now consolidating losses. It rose above the 23.6% Fibonacci retracement level of the downward move from the high of $3,340 to the low of $3,016.
Ethereum price is now trading below the $3,200 level and the 100 hourly simple moving average. On the upside, the price appears to be facing hurdles near the $3,120 level. There is also a short-term contracting triangle forming with resistance at $3,120 on the hourly chart of ETH/USD.
The first major resistance is near the $3,180 level or the 50% Fib retracement level of the downward move from the $3,340 swing high to the $3,016 low. The main resistance is now forming near $3,220.
A clear move above the $3,220 resistance level could send the price towards the $3,320 resistance level. A bullish break above the $3,320 resistance may require further gains in the coming sessions. In the mentioned case, the Ether price may rise towards the $3,450 resistance area.
Another drop in ETH?
If Ethereum fails to break above the $3,320 resistance level, it could start another decline. Initial support on the downside is near the $3,060 level. The first major support is near the $3,040 area.
A clear move below the $3,040 support could push the price towards $2,980. Any further losses could send the price towards the $2,920 support level in the near term. The next major support is at $2,880.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Key Support Level – $3,040
Major resistance level – $3,120