Ethereum Price Confronts Barriers to a New Surge—Can Bulls Prevail?
Ethereum price started a downward correction below the $3,150 area. ETH is currently consolidating near $3,120 and may attempt a new leg higher.
- Ethereum started a short-term downside correction below the $3,150 area.
- The price is trading below $3,200 and the 100 hourly simple moving average.
- A short-term contracting triangle has formed with resistance at $3,120 on the hourly chart of ETH/USD (data via Kraken).
- If the pair remains stable above the $3,040 area, a fresh leg higher may begin.
Ethereum price sees new surge
Ethereum price failed to initiate a fresh increase above the $3,250 area and started a downside correction, e.g. Bitcoin. ETH fell below the $3,150 and $3,120 support levels.
The bears even pushed the price below $3,040. It tested the $3,000 support area. A low was formed at $3,016 and the price is now consolidating losses. It climbed above the 23.6% Fib retracement level of the downward move from the swing high of $3,340 to low of $3,016.
Ethereum price is currently trading below $3,200, 100 hour simple moving average. On the bright side, the price seems to be facing a hurdle near the $3,120 level. A short-term contracting triangle has also formed on the hourly chart of ETH/USD with resistance at $3,120.
The first major resistance level is near $3,180, which is the 50% Fibonacci retracement level of the downward move from the $3,340 swing high to $3,016 low. Major resistance is currently forming near $3,220.
A clear break above the $3,220 resistance may push the price towards the $3,320 resistance. An upside break above the $3,320 resistance may bring more gains in the coming sessions. In the above scenario, Ethereum may rise towards the $3,450 resistance zone.
ETH falling again?
If Ethereum fails to break the $3,320 resistance, it may start another decline. Initial support on the downside is near $3,060. The first major support is located near the $3,040 area.
A clear break below the $3,040 support could push the price towards $2,980. If there is further decline, the price may move towards the $2,920 support in the near term. The next key support is located at $2,880.
Technical indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
hourly relative strength index – The RSI for ETH/USD is currently below the 50 area.
Major Support – $3,040
Major Resistance – $3,120
