Ethereum price tested the $3,040 zone and corrected higher. ETH is currently testing support at $2,925 and could aim for another rally.
- Ethereum started a downward correction after the bears defended the $3,040 level.
- The price is trading below the 100-hour simple moving average at $2,960.
- The hourly chart of ETH/USD (data feed via Kraken) has a connecting bearish trend line forming resistance at $2,965.
- Barring a close below the support at $2,925, the pair could start a new rally.
Ethereum price falls again
Ethereum price, similar to Bitcoin, has started a new rally above the $2,950 and $2,960 levels. ETH cleared the $3,000 level before a bear market emerged around $3,040.
A new weekly high was formed at $3,039, and the price recently started a downward correction. There was a move below the $3,000 level. Ether has fallen below the bull market’s 50% Fib retracement level from a swing low of $2,860 to a high of $3,039.
Ethereum is currently trading below $2,960 and its 100-hourly simple moving average. However, bulls are active around the $2,925 support and the 61.8% Fib retracement level of the rally from the $2,860 swing low to the $3,039 high.
Immediate resistance is near the $2,960 level. There is also a connecting bearish trend line on the hourly chart of ETH/USD that forms resistance at $2,965.
The first major resistance level is near the $3,000 level. If the price breaks above the $3,000 resistance level, the price could move higher. The next major resistance lies at $3,050, above which the price could gain momentum and move higher towards the $3,150 level. If there is a clear move above the $3,150 level, the price could move higher and test the $3,220 resistance. Any further rally could send Ether heading toward the $3,350 resistance zone.
Further losses for ETH?
If Ethereum fails to clear the $2,965 resistance and trend line, it could continue to move lower. The first support on the downside is near the $2,925 level.
The next major support is near the $2,900 zone. A clear move below the $2,900 support could push the price towards $2,850. Any further losses could send the price towards the $2,740 level in the near term.
technical indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level.
Major Support Level – $2,925
Major Resistance Level – $2,965
