Ethereum attempted a steady rise above $3,000 against the US dollar. The ETH price fell near $3,050 and started a downside correction.
Ethereum started a downside correction after it failed to clear $3,050. The price is now trading above $2,900 and the 100 hourly simple moving average. A large contracting triangle is forming with resistance near $2,965 on the ETH/USD hourly chart (data feed via Kraken). The pair is consolidating above USD 2,900 and could begin fresh gains in the near term.
Ethereum price remains supported
Ethereum started a steady rise above the USD 2,850 resistance zone. ETH cleared the $2,920 and $2,950 resistance levels to move further into positive zone.
The price even surged above the $3,000 level and settled above the 100 easy moving hourly average. It highs near USD 3,054 and the price is now correcting gains. It corrected a few points below the $3,000 support zone.
There was a move below the 50% Fib retracement level of the upward move from the $2,885 swing low to $3,054 high. It is now trading above $2,900 and the 100 hourly simple moving average.
A major contracting triangle is also forming with resistance near $2,965 on the ETH/USD hourly chart. The triangle support is near the 76.4% Fib retracement level of the upward move from the $2,885 swing low to $3,054 high.
Source: ETHUSD on TradingView.com
If there is a fresh rise, the price could clear the USD 2,965 and USD 2,980 resistance levels. The first major resistance is near the USD 3,000 level. Ether price needs to clear the $3,000 resistance level to start another rise. In the mentioned case, the price may perhaps rise towards the $3,050 level. Any further gains could require a move towards the $3,120 resistance zone in the coming sessions.
Disadvantage of ETH?
If ethereum fails to initiate a fresh rise above the $3,000 level, it could trigger a downside correction. An initial support on the downside is near the trendline support and $2,940.
The next major support is near the $2,925 and the 100-hour SMA. A downward breach below the $2,925 support zone could push the price further. In the said case, the price may drop to $2,850.
Technical indicators
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $2,925
Major Resistance Level – $3,000
