Ethereum Faces Hurdles, What Could Trigger Fresh Rally
Ethereum found support near $3,080 and recovered higher against the US Dollar. ETH price is now struggling to clear the $3,200 resistance and the 100 hourly SMA.
- Ethereum found support near $3,080 and it started a fresh upward move.
- The price is now facing resistance near $3,200 and the 100 hourly simple moving average.
- There was a break below a short-term ascending channel with support near $3,210 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue lower if it fails to stay above the $3,150 support zone.
Ethereum Price Fails Near $3,200
Ethereum extended its decline below $3,120, but the bulls were active near $3,075 and $3,080. ETH price traded as low as $3,078 and it recently started an upside correction, similar to bitcoin.
There was a break above the $3,120 and $3,150 resistance levels. Ether surpassed the 23.6% Fib retracement level of the main drop from the $3,380 swing high to $3,078 low. The price even spiked above the $3,200 resistance the 100 hourly simple moving average.
However, the price failed to stay above $3,200. It was rejected near the 50% Fib retracement level of the main drop from the $3,380 swing high to $3,078 low. There is also a possible inverse head and shoulders pattern forming with support near $3,150.
Source: ETHUSD on TradingView.com
On the upside, an initial resistance is near the $3,200 level. The main resistance is now forming near $3,220 and the 100 hourly simple moving average. A clear break above the $3,220 resistance might open the doors for a steady increase. The next key resistance is now forming near the $3,300 level. Any more gains may possibly call for a move towards the $3,380 level in the near term.
More Losses in ETH?
If ethereum fails to continue higher above the $3,200 and $3,220 resistance levels, it could extend its decline. An immediate support on the downside is near the $3,150 level.
The next major support is now forming near the $3,120 zone. A downside break below the $3,120 support zone could accelerate losses. In the stated case, the price may possibly drop towards the $3,080 zone or even $3,020.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is still below the 50 level.
Major Support Level – $3,130
Major Resistance Level – $3,220