Ethereum price corrected its gains and traded below the $3,300 level. Ethereum is consolidating and facing hurdles near the $3,300 resistance area.
- Ethereum started a downward correction from the $3,400 resistance level.
- The price is trading below the $3,330 level and the 100-hour simple moving average.
- There was a break below a major bullish trend line with support at $3,295 on the hourly chart of the ETH/USD pair (data feed via Kraken).
- The pair may start another rise if it surpasses the $3,330 resistance area.
Ethereum Price Continues Losses Below $3,300
Ethereum price failed to break above the $3,400 resistance zone and started a downside correction, just like Bitcoin. Ethereum traded below the $3,330 and $3,300 support levels to enter a short-term bearish zone.
There was a break below the major bullish trend line with support at $3,295 on the hourly chart of the ETH/USD pair. The pair even rose below the support area at $3,250. A low was formed at $3,231 and the price is now consolidating its losses. It recovered some losses and is trading above $3,280.
The price tested the 50% Fibonacci retracement level of the downward move from the $3,362 high to $3,231 low. Ethereum price is now trading below $3,300 and the 100-hour simple moving average.
If a fresh rally occurs, the price could face resistance near the $3,300 level and the 100-hour simple moving average. The first major resistance is near the $3,330 level and the 76.4% Fib retracement level of the downside move from the $3,362 swing high to $3,231 swing low.
The next major hurdle is near the $3,350 level. A close above the $3,350 level could send Ether towards the $3,400 resistance level. The next major resistance is near the $3,500 level. An upside break above the $3,500 resistance level could send the price towards the $3,650 resistance area in the near term.
Another drop in ETH?
If Ethereum fails to clear the $3,330 resistance level, it could continue moving lower. The initial support on the downside is near $3,250. The first major support is near the $3,230 area.
A clear move below the $3,230 support could push the price towards $3,180. Any further losses could push the price towards the $3,080 support in the near term. The next major support level is at $3,020.
Technical indicators
MACD hourly – 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 – $3230
Key Resistance Level – $3,330
