Ethereum price started a downside correction from the $3,850 zone. ETH is now moving lower but might find bids near the $3,520 support zone.
- Ethereum started a downside correction below the $3,770 level.
- The price is trading below $3,680 and the 100-hourly Simple Moving Average.
- There is a key bearish trend line forming with resistance at $3,670 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it remains supported above the $3,550 zone in the near term.
Ethereum Price Holds Support
Ethereum price failed to extend gains above the $3,850 level and started a downside correction, like Bitcoin. ETH price traded below the $3,800 and $3,770 support levels.
There was a move below the 50% Fib retracement level of the upward move from the $3,480 swing low to the $3,859 high. The decline was such that the price even dived below the $3,660 level and the 100-hourly Simple Moving Average.
However, the bulls were active near the 76.4% Fib retracement level of the upward move from the $3,480 swing low to the $3,859 high. Ethereum price is now trading below $3,680 and the 100-hourly Simple Moving Average.
On the upside, the price could face resistance near the $3,670 level. There is also a key bearish trend line forming with resistance at $3,670 on the hourly chart of ETH/USD. The next key resistance is near the $3,770 level. The first major resistance is near the $3,800 level. A clear move above the $3,800 resistance might send the price toward the $3,850 resistance.
An upside break above the $3,850 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,000 resistance zone or even $4,200 in the near term.
Another Decline In ETH?
If Ethereum fails to clear the $3,670 resistance, it could start a downside correction. Initial support on the downside is near the $3,600 level. The first major support sits near the $3,570 zone.
A clear move below the $3,570 support might push the price toward the $3,520 support. Any more losses might send the price toward the $3,450 support level in the near term. The next key support sits at $3,320.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $3,520
Major Resistance Level – $3,670
