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Ethereum price began a downward correction below the $3,150 area. ETH is currently consolidating near $3,120 and may attempt a fresh hike.
- Ethereum has begun a short-term downward correction below the $3,150 area.
- The price is trading below $3,200 and the 100-hour simple moving average.
- The hourly chart of ETH/USD (data feed via Kraken) shows a short-term contraction triangle forming with resistance at $3,120.
- If it holds steady above the $3,040 area, the pair could start a fresh increase.
Ethereum Price Eyes Fresh Increase
Ethereum price failed to start a new rise above $3,250 and began a downward correction like Bitcoin. ETH fell below the $3,150 and $3,120 support levels.
The decline even pushed the price below $3,040. The $3,000 support zone was tested. The low was formed at $3,016 and the price is currently consolidating losses. It crossed the 23.6% Fib retracement level of the downward move from the $3,340 swing high to the $3,016 low.
Ethereum price is currently trading below $3,200 and the 100-hour simple moving average. On the other hand, the price appears to be facing a hurdle near the $3,120 level. The hourly chart of ETH/USD also features a short-term contracting triangle with resistance forming at $3,120.
The first major resistance is near the $3,180 level or the 50% Fib retracement level of the downside move from the $3,340 swing high to the $3,016 low. Major resistance is currently forming near $3,220.
A clear break above the $3,220 resistance line could push the price towards the $3,320 resistance line. An upside break above the $3,320 resistance could lead to further gains in the coming sessions. If indicated, Ethereum could rise towards the $3,450 resistance zone.
Another decline in ETH?
If Ethereum fails to clear the $3,320 resistance, another decline could begin. Initial support for the downside is near the $3,060 level. The first major support is near the $3,040 area.
A clear break below the $3,040 support could push the price towards $2,980. More losses could push the price towards the $2,920 support level in the near term. The next major support level is $2,880.
technical indicators
Hourly MACD – ETH/USD MACD is losing momentum in bearish territory.
RSI per hour – The RSI for ETH/USD is now below the 50 area.
Key Support Level – $3,040
Key Resistance Level – $3,120