Ethereum is attempting an upside correction above $3,000 against the US Dollar. ETH price must clear $3,130 and the 100 hourly SMA to continue higher.
- Ethereum started an upside correction from the $2,950 zone.
- The price is still trading below $3,100 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $3,035 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could recover, but upsides might be capped near the $3,130 level.
Ethereum Price Faces Hurdles
Ethereum formed a base above the $2,950 level and started a fresh increase. ETH broke the $3,000 resistance zone to move into a short-term positive zone.
There was a move above the $3,020 resistance level. Ether was able to clear the 23.6% Fib retracement level of the key drop from the $3,310 swing high to $2,951 low. Besides, there was a break above a key bearish trend line with resistance near $3,035 on the hourly chart of ETH/USD.
The price is now trading above the $3,050 level. On the upside, an initial resistance is seen near the $3,085 level. The next major resistance is near the $3,130 level and the 100 hourly simple moving average.
The 50% Fib retracement level of the key drop from the $3,310 swing high to $2,951 low is also near the $3,130 level. A close above the $3,130 level and the 100 hourly simple moving average might start a decent recovery wave.
Source: ETHUSD on TradingView.com
The next major resistance could be near the $3,170. A clear move above the $3,170 resistance could set the pace for a move above the $3,200 level. In the stated case, the price could climb above the $3,250 zone.
Fresh Decline in ETH?
If ethereum fails to start a recovery wave above the $3,130 level, it could start a fresh decline. An initial support on the downside is near the $3,020 zone.
The next major support is near the $2,950 level. If there is a downside break below the $2,950 support, the price could start another decline. In this scenario, there is a risk of a move towards the $2,840 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $2,950
Major Resistance Level – $3,130
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