Ethereum Corrects Losses, Why 100 SMA Is Key
Ethereum found bids near the USD 3,140 zone and corrected higher against the US dollar. The ETH price needs to clear $3,325 and the 100-hour SMA to start a decent rise.
Ethereum traded as low as USD 3,143 and it is currently correcting higher. The price is now trading below $3,300 and the 100 hourly simple moving average. A rising channel is forming in the near term with resistance near $3,300 on the ETH/USD hourly chart (data feed via Kraken). The pair needs to gain $3,300 and the 100 hourly SMA to gain bullish momentum.
Ethereum Price Eyes Recovery
Ethereum was trading as low as $3,143 before the bulls appeared. ETH established a base above USD 3,150 and started some significant upward movement.
There was a break above the $3,200 resistance level. Ether price was able to clear the 23.6% Fib retracement level from the key decline from the $3,550 swing high to $3,143 low. However, it is still trading below $3,300 and the 100 hourly simple moving average.
On the upside, initial resistance is seen near the $3,300 level. A short term bullish channel is also forming with resistance near $3,300 on the ETH/USD hourly chart.
The next major resistance is near the $3,325 level and the 100 hourly simple moving average. A clear move above the $3,325 level could even push the price above the 50% key decline Fib retracement level from the $3,550 swing high to $3,143 low.
Source: ETHUSD on TradingView.com
If ether price moves above the $3,325 and $3,345 resistance levels, it could begin a steady rise. In the mentioned case, the price could rise above the $3,400 zone. The next major barrier is near the $3,450 level and a connecting bearish trendline.
New Drop in ETH?
If ethereum fails to start a fresh rise above the $3,325 level, it could spark another significant drop. An initial support on the downside is near the $3,230 zone.
The next major support is near the $3,200 level. If there is a downward breach below the $3,200 support, the price could fall again. In the mentioned case, the price may even fall below the low of USD 3,143.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,200
Major Resistance Level – $3,325