Ethereum Price Undergoes Technical Correction
Ethereum price has started a downward correction from the $3,520 zone. ETH is stabilizing above $3,420 and might attempt further upward movement in the short term.
- Ethereum began a downside correction after failing to break out of the $3,520 zone.
- The price is trading above $3,420 and the 100 hourly simple moving average.
- The hourly chart of ETH/USD (data feed via Kraken) shows a descending trend line forming with resistance near the $3,470 level.
- To continue its rise, the pair needs to break above the resistance levels at $3,470 and $3,520.
Ethereum price falls
The price of Ethereum started a steady climb above $3,420, with ETH breaking through the $3,450 level and moving into short-term positive territory just like Bitcoin.
The price broke through the $3,500 resistance zone. The high was formed at $3,516 and the price recently started a downward correction, with a move below the $3,480 and $3,470 levels. The price fell below the 23.6% Fib retracement level of the rise from the swing low of $3,350 to the high of $3,516.
However, bulls appear to be active near the support zone at $3,420 as they are defending the 50% Fib retracement level of the rise from the swing low of $3,350 to the high of $3,516.
Ethereum is trading above $3,420 and the 100-hourly simple moving average. On the upside, the price is facing resistance near $3,470. Also, the hourly chart of ETH/USD has a descending trend line forming that is connecting with resistance near $3,470.
The first major resistance is near $3,500. The next major hurdle is near $3,520. A close above $3,520 could send Ether towards the resistance at $3,550. The next major resistance is near $3,650. A break above the resistance at $3,650 could send the price higher. Further upside could send Ether towards the resistance zone at $3,720.
Does ETH support Dips?
If Ethereum fails to break out of the resistance at $3,470, it may continue to fall. The first support on the downside is near the $3,435 level, while the first major support is near the $3,420 level.
A clear break below the $3,420 support could send the price closer to $3,350, while a further drop could see the price approach the $3,320 levels in the short term.
Technical Indicators
Hourly MACD – ETH/USD’s MACD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 zone.
Key Support Level – $3,420
Key Resistance Level – $3,470
