Ethereum Corrects Lower, But Bulls Remain Active
Ethereum has experienced a correction after surpassing the $3,000 resistance level. However, the price remains above $2,900 and the 100-hourly Simple Moving Average. There is a connecting bearish trend line with resistance at $2,950 on the hourly chart of ETH/USD. Unless the bears push the price below $2,865, there is potential for a fresh increase in Ethereum’s price.
Ethereum Price Correction
After breaking above the $3,000 resistance zone, Ethereum faced selling pressure from bears. The price reached a new multi-week high at around $3,032 before starting a downside correction. It dipped below $3,000 and $2,950 levels but found support above $2,865.
The bulls are now active above the $2,865 support level and attempting to push the price higher. Ethereum is currently trading above $2,900 and the 100-hourly Simple Moving Average. However, there is a bearish trend line forming with resistance at $2,950.
The first major resistance level is near $2,975 or the 61.8% Fib retracement level of the recent decline from the swing high to the low. If Ethereum surpasses this level, it may test the $3,065 resistance zone and potentially rally towards $3,185 and even $3,220.
Possible Downside Correction
If Ethereum fails to break above the $2,975 resistance level, it could experience another downside correction. The initial support on the downside is near $2,900 and the 100-hourly Simple Moving Average.
The first major support level is around $2,865. If this support level is breached, the next key support zone is at $2,820. Further losses may lead to a drop towards $2,740 and potentially $2,720 in the coming sessions.
Technical Indicators
Hourly MACD: The MACD for ETH/USD is showing signs of losing momentum in the bullish zone.
Hourly RSI: The RSI for ETH/USD is currently near the 50 level.
Major Support Level: $2,900
Major Resistance Level: $2,975
Source: ETHUSD on TradingView.com
Hot Take: Ethereum’s Correction Presents Buying Opportunity
Ethereum’s recent correction provides a buying opportunity for crypto enthusiasts. With support above $2,900 and the 100-hourly Simple Moving Average, there is potential for a fresh increase in price. Bulls remain active unless the price drops below $2,865. However, a break above the $2,975 resistance level could lead to further gains and a test of higher resistance levels. Keep an eye on technical indicators such as MACD and RSI for further insights into Ethereum’s price movement.
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