Ethereum Price is Primed For a Correction And Only 1 Thing is Holding it Back
Ethereum price is attempting an upside correction from the $2,150 support. ETH could gain pace if it clears the $2,240 resistance zone.
Ethereum started an upside correction from the $2,165 zone.
The price is trading below $2,240 and the 100-hourly Simple Moving Average.
There was a break above a connecting bearish trend line with resistance near $2,235 on the hourly chart of ETH/USD (data feed via Kraken).
The pair might start a steady increase if it clears the $2,240 resistance zone.
Ethereum Price Holds Support
Ethereum price extended its decline below the $2,240 support zone. ETH spiked below $2,200 before the bulls appeared near the $2,165 level. The price formed a short-term base and started an upside correction like Bitcoin.
There was a move above the $2,200 resistance level. Besides, there was a break above a connecting bearish trend line with resistance near $2,235 on the hourly chart of ETH/USD. However, the bears are active near the $2,240 resistance. They defended the 23.6% Fib retracement level of the downward move from the $2,480 swing high to the $2,165 low.
Ethereum is now trading below $2,240 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $2,240 level.
The next hurdle could be $2,300 or the 100-hourly Simple Moving Average, above which the price might rise and test the 50% Fib retracement level of the downward move from the $2,480 swing high to the $2,165 low at $2,320. The next major resistance is now near $2,360.
Source: ETHUSD on TradingView.com
A clear move above the $2,360 level might start a decent increase. In the stated case, the price could rise toward the $2,420 level. Any more gains might send the price toward the $2,500 zone.
Another Drop in ETH?
If Ethereum fails to clear the $2,240 resistance, it could start another decline. Initial support on the downside is near the $2,200 level.
The next key support could be the $2,165 zone. A downside break below the $2,165 support might start another substantial decline. In the stated case, Ether could test the $2,080 support. Any more losses might send the price toward the $2,000 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $2,165
Major Resistance Level – $2,240
