Ethereum Price Corrects Below $3,700; Could Resume Upside
Ethereum has experienced a downside correction after failing to maintain its position above the $3,700 level. The price is currently trading below $3,700 and the 100-hourly Simple Moving Average (SMA), indicating a short-term bearish trend. However, if Ethereum manages to clear the $3,750 resistance zone, it could resume its upward movement.
Ethereum Price Dips
Similar to Bitcoin, Ethereum has undergone a downside correction below the $3,800 and $3,700 levels. The price even dropped below the $3,650 support level, entering a short-term bearish zone. It reached a low of $3,414 before initiating a recovery wave.
Currently, Ethereum has moved above the $3,500 level and surpassed the 23.6% Fibonacci retracement level of the downward move from the $4,084 swing high to the $3,414 low.
However, Ethereum’s price is now trading below $3,700 and the 100-hourly SMA. On the upside, immediate resistance can be found near the $3,650 level. Additionally, there is a key bearish trend line forming with resistance at $3,660 on the hourly chart of ETH/USD.
- The first major resistance level is near $3,750 or the 50% Fibonacci retracement level of the downward move from the $4,084 swing high to the $3,414 low.
- The next significant resistance lies around $3,830. If Ethereum surpasses this level, it may gain bullish momentum.
If Ether manages to rally past these resistances:
- Ethereum could potentially reach the $3,925 level.
- Further gains might push the price towards $4,000.
- Above $4,000, a test of $4,080 could be possible.
More Losses in ETH?
If Ethereum fails to clear the $3,650 resistance level, it may experience another decline. The initial support on the downside can be found near the $3,520 level. The first major support lies at the $3,500 zone, followed by the $3,420 zone. A clear move below $3,420 might lead to a further drop towards $3,350. Additional losses could potentially push the price towards the $3,250 level.
Technical Indicators
The hourly Moving Average Convergence Divergence (MACD) for ETH/USD is losing momentum in the bearish zone. Furthermore, the Relative Strength Index (RSI) for ETH/USD has fallen below the 50 level.
Overall:
- Major Support Level – $3,500
- Major Resistance Level – $3,650
Ethereum’s price correction has brought it below key resistance levels and indicators like the 100-hourly SMA. However, there is still potential for an upside movement if Ethereum manages to clear the $3,750 resistance zone. On the other hand, failure to surpass the resistance levels could lead to further losses. Traders and investors should closely monitor these levels and technical indicators to make informed decisions about their Ethereum holdings.
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