Ethereum Price Faces Resistance at $3,120 Amidst Downside Correction
Ethereum price began a downside correction below the $3,150 zone and is currently consolidating near $3,120, with potential for a fresh increase.
- Ethereum initiated a short-term correction below the $3,150 level.
- The price trades below $3,200 and the 100-hourly Simple Moving Average.
- A short-term contracting triangle is forming with resistance at $3,120 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may start a new increase if it remains above the $3,040 zone.
Ethereum Price Eyes Fresh Increase
Ethereum price struggled to rise above the $3,250 zone and began a downside correction similar to Bitcoin. ETH fell below the $3,150 and $3,120 support levels.
The price dropped below the $3,040 zone and tested the $3,000 support level, forming a low at $3,016. Currently, it is consolidating losses and has climbed above the 23.6% Fib retracement level of the decline from the $3,340 swing high to the $3,016 low.
ETH is trading below $3,200 and the 100-hourly Simple Moving Average. Resistance appears near the $3,120 level, coinciding with the contracting triangle formation.
The first major resistance is around the $3,180 level or the 50% Fib retracement of the downward move from the $3,340 swing high to the $3,016 low. The main resistance forms near $3,220.
A clear breakout above the $3,220 resistance could lead to an increase toward the $3,320 resistance. Further gains may occur if the price surpasses $3,320, potentially targeting the $3,450 resistance zone.
Another Decline In ETH?
If Ethereum fails to break through the $3,320 resistance, it may experience another decline. Initial support is near the $3,060 level, with major support located around the $3,040 zone.
A drop below the $3,040 support could drive the price toward $2,980. Additional losses may push it down to the $2,920 support level, with the next key support at $2,880.
Technical Indicators
Hourly MACD: The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI: The RSI for ETH/USD is now below the 50 threshold.
Major Support Level: $3,040
Major Resistance Level: $3,120