Ethereum Price Faces Another Rejection: Will Momentum Return?
Ethereum price started a downward correction from the $3,500 resistance. ETH is consolidating above $3,120 and faces many obstacles.
- Ethereum failed to close above $3,500 and corrected gains.
- The price is trading below $3,320 and the 100 hourly simple moving average.
- There is a short-term bearish trend line connecting with resistance at $3,380 on the hourly chart of ETH/USD (data feed from Kraken).
- If the $3,300 resistance is exceeded, the pair may start rising again.
Ethereum price falls to support
Ethereum price started a sharp rise above $3,320, but with Bitcoin. ETH failed to close above $3,500 and corrected gains.
It fell below the $3,320 and $3,300 support levels. A low was formed at $3,141 and the price is now consolidating losses. Just above the $3,200 level. The price climbed above the 23.6% Fib retracement level of the recent swing high of $3,445 to low of $3,141.
Ethereum price is currently trading below $3,280, 100 hour simple moving average. On the bright side, the price seems to be facing a hurdle near the $3,240 level. The first major resistance level is seen near $3,300, which is the 50% Fibonacci retracement level of the recent swing high of $3,445 to low of $3,141.
Major resistance is now forming near $3,380. There is also a short-term connecting bearish trend line forming with resistance at $3,380 on the hourly chart of ETH/USD. A clear break above the $3,380 resistance may push the price towards the $3,450 resistance.
An upside break above the $3,450 resistance could bring more gains in the coming sessions. In the above scenario, Ethereum may rise towards the $3,500 resistance zone or even $3,550 in the short term.
ETH loses more?
If Ethereum fails to break above the $3,300 resistance, it may start another decline. Initial support on the downside is near $3,150. The first major support is near $3,120.
A clear break below the $3,120 support could push the price towards the $3,050 support. Any further losses could push the price towards the $3,020 support in the near term. The next key support is located at $3,000.
Technical indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
hourly relative strength index – The RSI for ETH/USD is currently below the 50 area.
Major Support – $3,120
Major Resistance – $3,300
