Ethereum price started a downward correction below $3,650. ETH has been trading below $3,500 and is currently trying to stage a decent recovery in the near term.
- Ethereum started a downward correction below the $3,700 zone.
- The price is trading below $3,700 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance at $3,660 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its rise if it crosses the $3,750 resistance zone.
Ethereum price drops
Ethereum price started a downward correction below the USD 3,800 and USD 3,700 levels, just like Bitcoin. ETH fell below the $3,650 support level and entered a short-term bearish zone.
It even peaked below the $3,500 support zone. A low was formed at $3,414 and the price is now trying to make a recovery wave. There was a move above the USD 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.
The Ethereum price is now trading below $3,700 and the 100-hourly Simple Moving Average. On the upside, immediate resistance is around the USD 3,650 level. There is also a major bearish trendline 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 USD 3,830, above which the price could gain bullish momentum.
Source: ETHUSD on TradingView.com
In the mentioned case, Ether could rise to the $3,925 level. If there is a move above the USD 3,925 resistance, Ethereum could even rise towards the USD 4,000 resistance. Any gains could require a $4,080 test.
Lose more in ETH?
If Ethereum fails to clear the USD 3,650 resistance, it could trigger another decline. The initial downside support is near the $3,520 level.
The first major support is near the $3,500 zone. The next major support could be the $3,420 zone. A clear move below the USD 3,420 support could send the price towards USD 3,350. Any further losses could send the price towards the USD 3,250 level.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $3,500
Major resistance level – $3,650
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