Ethereum price entered a downside correction below the $3,250 area and it is currently consolidating near $3,000 and it could start a fresh increase.
Ethereum recently saw a short-term correction below $3,250, and the price is currently holding above $3,200 and above the 100 hourly simple moving average. On the hourly chart of ETH/USD, a bearish trend line has been formed with resistance at around $3,185 (data source: Kraken). If the price continues to hold above $3,000, a new round of gains may be in store.
Ethereum price failed to sustain the upward momentum above $3,450 and started to pullback. ETH fell below the $3,320 and $3,250 support levels and the bearish pressure pushed the price further below $3,120 and tested the $3,000 support range. After hitting a low of $3,031, the price started to consolidate and is currently in a consolidation phase. Next, Ethereum is likely to test the 23.6% Fibonacci retracement level of the move from the $3,340 high to $3,031 low.
Ethereum is currently trading below $3,200 and the 100 hourly simple moving average, but on a positive note, the price seems to be facing some support near $3,120.
The first major resistance is seen near $3,200. There is also a bearish trend line forming with resistance around $3,185 on the hourly chart of ETH/USD. A key resistance is currently seen near $3,265, which is the 76.4% Fibonacci retracement level of the recent rise from the $3,340 high to $3,031 low.
If Ethereum price succeeds in breaking out of the $3,265 resistance, it could further challenge the $3,320 resistance zone. Above this level, the price is expected to see more upside in the coming days and could move towards the $3,450 resistance zone.
Will ETH continue to fall?
If Ethereum fails to break the $3,200 resistance, the price is likely to extend its downtrend. An initial support is near the $3,040 level, while the main support is in the $3,000 area.
If the price falls below the $3,000 support, it could drop further to $2,950. If the decline continues, it could hit the $2,880 support in the short term, with the next important support at $2,740.
Technical indicators:
- Hourly MACD: The MACD for ETH/USD is trading in the bearish zone with weakening momentum.
- Hourly RSI: The RSI for ETH/USD is currently below 50, which suggests downward pressure.
Major Support Level: $3,040
Major Resistance: $3,200
