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 bearish trendline forming with resistance at $3,660 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may resume its rise if it surpasses the $3,750 resistance zone.
Ethereum Price Drops
The price of Ethereum started a negative correction below the $3,800 and $3,700 levels, as Bitcoin. ETH fell below the $3,650 support level to enter a short-term bearish zone.
It even reached 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 rose above the 23.6% Fib retracement level of the downward move from the $4,084 high to $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 bearish trend line forming with resistance at $3,660 on the hourly ETH/USD chart.
The first major resistance is near the $3,750 level or the 50% Fibonacci retracement level of the downward movement from the $4,084 swing high to $3,414 low. The next major resistance is near $3,830, above which the price could gain bullish momentum.
Source: ETHUSD on TradingView.com
In the stated case, Ether could rise towards the $3,925 level. If there is a move above the $3,925 resistance, Ethereum could even rise towards the $4,000 resistance. Any additional winnings may require a test of $4,080.
More losses in ETH?
If Ethereum fails to overcome the $3,650 resistance, it could begin a new decline. Initial downside support is near the $3,520 level.
The first major support is near the $3,500 zone. The next important support could be the $3,420 zone. A clear move below the $3,420 support could send the price towards $3,350. Further losses could send the price towards the $3,250 level.
Technical Indicators
MACD per hour – The MACD for ETH/USD is losing strength in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,500
Main resistance level – $3,650
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