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Ethereum price has started a downward correction from the $3,500 resistance level. ETH is consolidating above $3,120 and facing several hurdles.
- Ethereum failed to accelerate the pace of closing above $3,500 and corrected gains.
- The price is trading below the $3,320 level and the 100 hourly simple moving average.
- There is a short-term continuous bearish trend line forming with resistance at $3,380 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start another increase if it crosses the $3,300 resistance level.
Ethereum price drops to support
Ethereum price started a good upward movement above the $3,320 level, but the gains were limited compared to Bitcoin. ETH failed to consolidate the pace to close above $3,500 and correct gains.
There was a move below the $3,320 and $3,300 support levels. The low was formed at $3,141 and the price is now consolidating losses. There was a slight increase above the $3,200 level. The price rose above the 23.6% Fibonacci retracement level of the recent decline from the high of $3,445 to the low of $3,141.
Ethereum price is now trading below the $3,280 level and the 100 hourly simple moving average. On the upside, the price appears to be facing hurdles near the $3,240 level. The first major resistance is near the $3,300 level or the 50% Fib retracement level of the recent decline from the high of $3,445 to the low of $3,141.
The main resistance is now forming near $3,380. There is also a connecting short-term bearish trend line forming with resistance at $3,380 on the hourly chart of the ETH/USD pair. A clear move above the $3,380 resistance level could send the price towards the $3,450 resistance level.
A bullish break above the $3,450 resistance may require further gains in the coming sessions. In the mentioned case, Ether could rise towards the $3,500 or even $3,550 resistance area in the near term.
More losses in ETH?
If Ethereum fails to break above the $3,300 resistance level, it could start another decline. Initial support on the downside is near the $3,150 level. The first major support is near the $3,120 level.
A clear move below the $3,120 support level could push the price towards the $3,050 support level. Any further losses could send the price towards the $3,020 support level in the near term. The next major support is at $3,000.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Major Support Level – $3,120
Major resistance level – $3,300