Ethereum price started a downside correction below $3,650. ETH traded below $3,500 and is currently attempting a decent recovery wave in the near term.
- Ethereum started a downside correction below the $3,700 zone.
- The price is trading below $3,700 and the 100-hourly Simple Moving Average.
- There is a key bearish trend line forming with resistance at $3,660 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its increase if it clears the $3,750 resistance zone.
Ethereum Price Dips
Ethereum price started a downside correction below the $3,800 and $3,700 levels, like Bitcoin. ETH declined below the $3,650 support level to enter a short-term bearish zone.
It even spiked below the $3,500 support zone. A low was formed at $3,414 and the price is now attempting a recovery wave. There was a move above the $3,500 level. Ether climbed above the 23.6% Fib retracement level of the downward move from the $4,084 swing high to the $3,414 low.
Ethereum price is now trading below $3,700 and the 100-hourly Simple Moving Average. On the upside, immediate resistance is near the $3,650 level. There is also a key bearish trend line forming with resistance at $3,660 on the hourly chart of ETH/USD.
The first major resistance is near the $3,750 level or the 50% Fib retracement level of the downward move from the $4,084 swing high to the $3,414 low. The next major resistance is near $3,830, above which the price might gain bullish momentum.
Source: ETHUSD on TradingView.com
In the stated case, Ether could rally toward the $3,925 level. If there is a move above the $3,925 resistance, Ethereum could even rise toward the $4,000 resistance. Any more gains might call for a test of $4,080.
More Losses In ETH?
If Ethereum fails to clear the $3,650 resistance, it could start a fresh decline. Initial support on the downside is near the $3,520 level.
The first major support is near the $3,500 zone. The next key support could be the $3,420 zone. A clear move below the $3,420 support might send the price toward $3,350. Any more losses might send the price toward the $3,250 level.
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 level.
Major Support Level – $3,500
Major Resistance Level – $3,650
