Ethereum Price Correction Below Key Support Levels
The price of Ethereum, like Bitcoin, has started a downside correction below key support levels. This has resulted in ETH trading below $3,550 and the 100-hourly Simple Moving Average. As a result, there is a major bearish trend line forming with resistance at $3,520 on the hourly chart of ETH/USD.
Downside Movement and Consolidation
Ethereum’s price experienced a downside correction below the $3,720 and $3,650 levels. The decline continued below the $3,550 support level, pushing the price further into a short-term bearish zone. Eventually, the price fell below the $3,420 support level and reached a low of $3,365.
Currently, Ethereum’s price is consolidating its losses. It is displaying a few bearish signs below the 23.6% Fib retracement level of the downward move from the $3,675 swing high to the $3,365 low.
Resistance Levels and Bearish Trend Line
Ethereum’s price is currently trading below $3,550 and the 100-hourly Simple Moving Average. On the upside, immediate resistance is near the $3,440 level. The first major resistance level is near $3,520. Additionally, there is a major bearish trend line forming with resistance at $3,520 on the hourly chart of ETH/USD.
This trend line coincides with the 50% Fib retracement level of the downward move from the $3,675 swing high to the $3,365 low. The next major resistance level is near $3,600. If Ethereum manages to surpass these resistance levels, it could gain bullish momentum.
Potential Rally and Resistance Levels
If Ethereum clears the $3,520 resistance level, it could potentially rally towards the $3,650 level. Further gains might even lead to a rise towards the $3,825 resistance level. In such a scenario, Ethereum could test the $4,000 mark.
Possible Downside Movement
If Ethereum fails to clear the $3,520 resistance level, it could continue moving downwards. The initial support on the downside is near the $3,365 level. The first major support level is near $3,320, followed by the key support zone at $3,250. A clear move below the $3,250 support level might push the price towards $3,200. Further losses could result in a drop to the $3,150 level.
Technical Indicators
- Hourly MACD: The MACD for ETH/USD is gaining momentum in the bearish zone.
- Hourly RSI: The RSI for ETH/USD is now below the 50 level.
Conclusion
Ethereum has experienced a downside correction below key support levels, trading below $3,550 and the 100-hourly Simple Moving Average. A major bearish trend line has formed with resistance at $3,520 on the hourly chart of ETH/USD. If Ethereum fails to surpass this resistance level, it could continue its downward movement. However, if it manages to clear this level and other resistance levels, a potential rally towards $4,000 is possible.
Hot Take: Potential Bearish Momentum for Ethereum
Ethereum’s price has started a downside correction and is currently trading below key support levels. With the presence of a major bearish trend line and resistance at $3,520, there is potential for further decline. If Ethereum fails to surpass these levels, it could continue its downward movement towards support levels at $3,365 and $3,320. Traders should closely monitor these levels and technical indicators such as MACD and RSI for further insights into Ethereum’s price movement.
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