TA: Ethereum Just Saw Key Technical Correction, But 100 SMA Is Still Strong

Ethereum failed to clear the $3,350 resistance and corrected lower against the US Dollar. ETH price is still above the 100 hourly SMA and it could rise again to $3,350.

• Ethereum seems to be facing a strong resistance near $3,350 and $3,380.
• The price is now trading above $3,200 and the 100 hourly simple moving average.
• There is a crucial bullish trend line forming with support near $3,180 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase as long as it is above the $3,150 support zone.

Ethereum Price Rally Fades

Ethereum made another attempt to gain strength above $3,300 and $3,320. However, ETH price failed to continue higher above $3,350 and started a fresh decline, similar to bitcoin.

The price broke the $3,300 and $3,250 support levels. Ether traded below the 50% Fib retracement level of the upward move from the $3,142 swing low to $3,348 high. The price even spiked below the $3,200 support and the 100 hourly simple moving average, but the bulls were active.

The price found support near the 61.8% Fib retracement level of the upward move from the $3,142 swing low to $3,348 high. There is also a crucial bullish trend line forming with support near $3,180 on the hourly chart of ETH/USD.

It is now trading above $3,200 and the 100 hourly simple moving average. An immediate resistance is near the $3,250 level. The first key resistance is near the $3,285 level, above which the price could accelerate higher.

Source: ETHUSD on TradingView.com

The main resistance is now forming near the $3,350 level. A clear break above the $3,350 resistance might open the doors for a steady increase. In the stated case, ether may possibly rise towards the $3,420 level.

Downside Break in ETH?

If ethereum fails to continue higher above the $3,250 and $3,285 resistance levels, it could extend its decline. An immediate support on the downside is near the $3,200 level.

The next major support is now forming near the $3,150 zone. A downside break below the $3,150 support zone could spark a sharp decline. In the stated scenario, ether price could revisit the $3,065 support region.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now just below the 50 level.

Major Support Level – $3,150

Major Resistance Level – $3,285