Ethereum attempts an upside correction above $3,000. According to technical analysis by NewsBTC’s Aayush Jindal, ETH price must surpass $3,130 and the 100 hourly SMA to continue higher.
Ethereum Faces Barriers
Ethereum formed a bottom above the $2,950 level and started a fresh increase. There was a move above the $3,020 resistance and ETH managed to clear the 23.6% Fib retracement level of the low from the $3,310 low to $2,951 low. Besides, there was a break above a key bearish trend line with resistance near $3,035 on the hourly chart of ETH/USD.
$3,130 Crucial
The price is currently trading above the $3,050 level. An initial resistance is seen near the $3,085 level. The next major resistance is near the $3,130 level and the 100 hourly simple moving average. This is close to the 50% Fib retracement level of the drop from the $3,310 low to $2,951 low. A close above the $3,130 level and the 100 hourly simple moving average could start a decent recovery wave.
The next major resistance could be near $3,170. A clear move above the $3,170 resistance could set the pace for a move above the $3,200 level. In the indicated case, the price could climb above the $3,250 zone.
Will Ethereum Drop More?
Jindal says that if Ethereum fails to start a recovery wave above the $3,130 level, it could start a fresh decline. According to him, an initial support is near the $3,020 region. The next major support is near the $2,950 level. If there is a downside break below the $2,950 support, the price could start another decline. In such a scenario, there is a risk of a move towards the $2,840 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now above the 50 level.
- Major Support – $2,950
- Major Resistance – $3,130
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