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Ethereum started a downside correction from $3,400 against the US Dollar. ETH price is holding the $3,250 support and eyes a fresh increase above the $3,320 resistance.
- Ethereum started a downside correction from the $3,400 resistance zone.
- The price is trading above $3,250 and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $3,300 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it stays above the $3,250 support zone.
Ethereum Price Corrects Lower
Ethereum started a strong increase above the $3,320 resistance zone. ETH even broke the $3,400 resistance zone and the 100 hourly simple moving average, but there was no momentum.
A high was formed near $3,412 and the price is now correcting gains. Ether price declined below the $3,320 support. There was a break below the 23.6% Fib retracement level of the key increase from the $2,931 swing low to $3,412 high.
Besides, there was a break below a major bullish trend line with support near $3,300 on the hourly chart of ETH/USD. It is now trading above $3,250 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
On the upside, an immediate resistance is near the $3,300 level. The first major resistance is near the $3,320 level. A clear move above the $3,320 level might start another increase in the near term. The next major resistance is near the $3,400 level, above which ether price could test $3,480. Any more gains could send the price towards the $3,550 level in the near term.
Dips Limited in ETH?
If ethereum fails to start a fresh increase above the $3,320 level, it could continue to move down. An initial support on the downside is near the $3,250 level. The first key support is now forming near the $3,175 level.
It is near the 50% Fib retracement level of the key increase from the $2,931 swing low to $3,412 high. A downside break below the $3,175 level might push the price towards the $3,115 zone. Any more losses could lead the price towards $3,000.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is above the 50 level.
Major Support Level – $3,250
Major Resistance Level – $3,320
