Ethereum Corrects But Why Dips Could Be Attractive In Short-Term

Ethereum has corrected gains of $4,121 to the US Dollar. If the price of Ethereum breaks above $4,040, it could trigger a new increase.

  • Ethereum was unable to break the $4,100 barrier and it corrected lower.
  • It is currently trading at $3,950. The 100-hourly simple moving average was also in effect.
  • A break was seen below a channel that is key to rising, with support close at $4,000. (Data feed via Kraken).
  • If the pair remains above $3,920 and the 100 hourly SMA, it could see a new increase.

Ethereum’s Price Drops

Ethereum began a gradual recovery above the $4,000 and $3,850 resistance levels. ETH even surpassed the $4,050 threshold and the 100 hourly simple moving mean.

The price did not rise above $4,080 or $4,100 resistances. The price reached a high of $4,121 just before it began a downward correction. A move below $4,050 or $4,000 was seen.

The hourly chart for ETH/USD showed a breakout below the key rising channel, with support at $4,040. The 100 hourly simple moving mean and $3950 are now the current trading levels.

The Fib retracement level at 23.6% of the upward movement from $3,650 to $4,121 was broken below. Near the $4,040 mark is immediate resistance. Next is $4,080. In the short term, a clear rise above $4,080 and the previous higher levels could trigger a new increase.

Ethereum Price

Next stop for bulls may be at $4,120. The bulls could move to the $4.250 level if they close above $4,120.

Are There More Losses in Ethereum?

If the $4,040 mark is not reached, ethereum could move lower. Initial support is located near the $3950 level.

Support is currently forming at the $3,920 and 100-hourly simple moving average levels. The price may lose more if it breaks below $3,920. Next major support is at $3,885. This is just below the 50% Fib support level. It represents the upmove from the $3650 low to the $4,121 high.

Technical Indicators

Hourly MACDIn the bullish zone, the MACD is gradually losing speed for ETH/USD.

Hourly RSIThe RSI is close to 50 for USD/ETH.

Major Support Level – $3,920

Major Resistance Level – $4,040

Get more Crypto News at CFX Magazine