Ethereum extended its rise and traded near $2,900 against the US Dollar. ETH price is correcting and it is likely to remain strong above the 100 hourly SMA
- Ethereum failed to clear the $2,900 level and it declined below $2,885.
- The price is still holding the $2,700 support and the 100 hourly simple moving average.
- There was a break below a short-term bullish trend line with support near $2,750 on the hourly chart of ETH/USD (data feed via Kraken).
- As long as there is no break below the 100 hourly SMA and $2,650, the pair could start a strong rise.
Ethereum Price Is Holding Support
Yesterday, Ethereum started a fresh rise above the $2,650 resistance area. ETH gained momentum above the $2,700 and $2,750 levels. It even broke the $2,800 level and 100 hourly simple moving average.
However, the price failed to continue above $2,900. A high was formed near $2,886 and the price started a fresh decline recently. There was a break below the $2,800 support area. Ether price is also trading below the 23.6% Fibonacci retracement level upward movement From the $2,530 low to $2,996 high.
There was a break below a short-term bullish trend line with support near $2,750 on the hourly chart of ETH/USD. The pair is now testing the 50% Fib retracement level of the upward move from the $2,530 low to $2,996 high.
Source: ETHUSD on TradingView.com
It also holds the $2,700 support and the 100 hourly simple moving average. An initial resistance on the upside is near the $2,780 and $2,800 levels. The first major resistance is near the $2,850 level.
A major breakout resistance is now forming near the $2,900 level. Levels above the $2,900 level are most likely to test the $3,000 resistance in the near term.
Supported Dips in ETH?
If Ethereum fails to clear the $2,800 and $2,850 resistance levels, it could extend its decline. An initial support on the downside is near the $2,700 level.
Major support is now forming near the $2,680 level and the 100 hourly SMA. A break below $2,680 and $2,650 could open the doors for a bigger decline. In the said case, the price of Ether may revisit at $2,500.
hourly macd – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
hourly rsi – The RSI for ETH/USD is currently below the 50 level.
Key Support Level – $2,650
Key Resistance Level – $2,850