Ethereum started a correction after struggling to gain momentum above the $3,200 resistance. ETH is now correcting but might find support around $3,030, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Continues to Find Support
Ethereum started a correction after it rallied as high as $3,235. There was a move below the $3,200 and $3,150 levels. ETH even settled below the 50% Fib retracement level of the upward move from the $2,952 high to $3,325 high. Besides, there was a break below a key bullish trend line with support near $3,160 on the hourly chart of ETH/USD. However, ETH is still trading above $3,000 and the 100 hourly simple moving average.
An immediate resistance is near the $3,150 level. The first major resistance is near the $3,200 level. A successful close above $3,200 could start another uptrend. In the stated case, ETH may exceed $3,235. The next major hurdle is near the $3,350 level, above which the bulls might aim a test of $3,500.
Will Ethereum Drop?
Jindal says that if Ethereum fails to continue higher above $3,160 or $3,200, it may continue to move lower. According to him, an initial support is near the $3,080 level.
The first major support is near the $3,030 level and the 100 hourly simple moving average. This is near the 76.4% Fib retracement level of the upward move from the $2,952 high to $3,325 high. A downside break below the $3,030 level could push ETH below $3,000. The next major support is near the $2,950 level, below which there is a risk of a larger decline.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is just below the 50 level.
- Main Support Level – $3,030
- Main Resistance Level – $3,200
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