Ethereum price started a downside correction from the $3,500 resistance zone. ETH declined below $3,440 and might struggle to stay above $3,380.
Ethereum is correcting gains from the $3,500 zone. The price is trading above $3,400 and the 100-hourly Simple Moving Average. There was a break below a connecting bullish trend line with support at $3,420 on the hourly chart of ETH/USD (data feed via Kraken). The pair could continue to decline further if there is a close below the $3,350 support.
Ethereum Price Retreats From $3,500
Ethereum price started a downside correction from the $3,500 resistance zone. ETH declined below the $3,450 and $3,440 support levels to enter a short-term bearish zone, like Bitcoin. There was a break below a connecting bullish trend line with support at $3,420 on the hourly chart of ETH/USD. The pair even spiked below $3,400 and the 23.6% Fib retracement level of the upward move from the $3,048 swing low to the $3,516 high.
Ethereum is now trading above $3,380 and the 100-hourly Simple Moving Average. If the price stays above the 100-hourly Simple Moving Average, it could attempt a fresh increase. On the upside, the price is facing resistance near the $3,440 level.
The first major resistance is near the $3,450 level. The next major hurdle is near the $3,500 level. A close above the $3,500 level might send Ether toward the $3,550 resistance. The next key resistance is near $3,620. An upside break above the $3,620 resistance might send the price higher toward the $3,750 resistance zone in the coming days.
More Downsides In ETH?
If Ethereum fails to clear the $3,440 resistance, it could continue to move down. Initial support on the downside is near $3,400 and the 100-hourly Simple Moving Average. The first major support sits near the $3,350 zone. A clear move below the $3,350 support might push the price toward $3,280 and the 50% Fib retracement level of the upward move from the $3,048 swing low to the $3,516 high. Any more losses might send the price toward the $3,200 support level in the near term. The next key support sits at $3,150.
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 below the 50 zone.
Major Support Level – $3,350
Major Resistance Level – $3,440
Conclusion: In conclusion, Ethereum is facing a downside correction from the $3,500 resistance zone, with support levels near $3,350 and $3,280. The price is currently trading above $3,380 and the 100-hourly Simple Moving Average but could continue to struggle near the $3,440 resistance level. Traders should monitor the technical indicators closely, especially the MACD and RSI, for potential shifts in momentum. The next key levels to watch are $3,350 on the downside and $3,440 on the upside. For more trending news articles related to cryptocurrency, visit DeFi Daily News.
