Ethereum price spiked above the $3,000 resistance before the bears appeared. ETH is correcting gains, but dips might be limited below the $2,865 support.
Ethereum struggled to stay above the $3,000 level and corrected lower.
The price is trading above $2,900 and the 100-hourly Simple Moving Average.
There is a connecting bearish trend line forming with resistance at $2,950 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase unless the bears push the price below $2,865.
Ethereum Price Corrects Lower
Ethereum price extended its rally above the $3,000 resistance zone. However, the bears were active above the $3,000 resistance. A new multi-week high is formed near $3,032 and the price started a downside correction, like Bitcoin.
There was a move below the $3,000 and $2,950 levels. The bulls are now active above the $2,865 support. A low is formed near $2,865 and the price is now attempting a fresh increase. There was a move above the 50% Fib retracement level of the recent decline from the $3,032 swing high to the $2,865 low.
Ethereum is now trading above $2,900 and the 100-hourly Simple Moving Average. Immediate resistance on the upside is near the $2,950 level. There is also a connecting bearish trend line forming with resistance at $2,950 on the hourly chart of ETH/USD.
The first major resistance is near the $2,975 level or the 61.8% Fib retracement level of the recent decline from the $3,032 swing high to the $2,865 low.
Source: ETHUSD on TradingView.com
The next major resistance is near $3,000, above which the price might rise and test the $3,065 resistance zone. If there is a move above the $3,065 resistance, Ether could even rally toward the $3,185 resistance. Any more gains might call for a test of $3,220.
More Losses In ETH?
If Ethereum fails to clear the $2,975 resistance, it could start another downside correction. Initial support on the downside is near the $2,900 level and the 100-hourly Simple Moving Average.
The first major support is near the $2,865 level. The next key support could be the $2,820 zone. A clear move below the $2,820 support might send the price toward $2,740. Any more losses might send the price toward the $2,720 level in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now near the 50 level.
Major Support Level – $2,900
Major Resistance Level – $2,975
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