Ethereum Corrects Losses, Why 100 SMA Is The Key

Ethereum saw bids close to the $3,140 area and was corrected higher against USD. The price of Ethereum must rise above $3,325 to begin a meaningful increase.

  • Ethereum trading as low as $3.143, but is correcting higher now.
  • The current price trades below $3,300 as well as the simple 100-hour moving average.
  • A short-term rising channel is emerging with resistance at $3,300 (data feed via Kraken).
  • To gain bullish momentum, the pair needs to clear $3,300 as well as the 100-hourly SMA.

Ethereum price eyes recovery

Before the bulls arrived, Ethereum was trading as low as $3143 ETH established a strong upward movement and surpassed the $3150 mark.

A break was seen above the resistance of $3,200. It was able clear 23.6% Fib resistance level, which marked the pivotal drop from the $3.550 swing high to the $3.143 low. It is trading at $3,300, below the simple moving average of 100 hours, and still under $3,300.

A resistance level near $3,300 is the initial support. On the hourly chart for ETH/USD, there is a rising channel that forms with resistance close to $3,300.

Next is resistance at the $3.325 level. The 100-hourly simple movement average will be the next. Clear movement above the $3.325 level may push the price higher than the 50% Fib Retracement level for the pivotal drop from $3,550 high to $3.143 low.

Ethereum Price

Source: TradingView.com, ETHUSD

It could begin a steady climb if the price of ether settles below the levels of $3,325 resistance and $3,345 support. The price may rise above $3,400 in the case mentioned. Next is the key barrier at $3,450 and an adjacent bearish trendline.

Is there a new decline in ETH?

It could begin another major decline if ethereum does not start an increase above $3,325. Near the $3,230 level is the first support for the downside.

Next major support will be at the $3,000. The price may resume falling if it breaks below the $3,000. Support. If this happens, then the price might even drop below the $3.143 low.

Technical indicators

Minutely MACDThe bullish zone is gradually gaining speed in the MACD of ETH/USD.

Hourly RSIThe RSI is at 50 for USD/ETH.

Major Support Level – $3,200

Major Resistance Level – $3,325

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