Ethereum price faced a correction recently, dropping below the $3,300 level and consolidating around this area. The cryptocurrency failed to break above the $3,400 resistance zone, leading to a downside correction similar to Bitcoin. Ethereum is currently trading below $3,330 and the 100-hourly Simple Moving Average. A key bullish trend line was broken with support at $3,295 on the hourly chart of ETH/USD.
The price even dipped below $3,250, forming a low at $3,231 before recovering slightly to around $3,280. Ethereum price tested the 50% Fib retracement level of the downward move from the $3,362 swing high to the $3,231 low. The major resistance levels to watch out for include $3,300, $3,330, and $3,350. Breaking above these levels could signal a potential move towards the $3,400 and $3,500 resistances.
However, if Ethereum fails to clear the $3,330 resistance, there is a possibility of further decline. Initial support levels are seen at $3,250 and $3,230, with a clear break below the latter potentially leading to a drop towards $3,180 and $3,080. The hourly MACD for ETH/USD is losing momentum in the bearish zone, while the hourly RSI is now below the 50 zone. The current major support level is at $3,230, with resistance at $3,330.
In conclusion, Ethereum’s price correction below $3,300 has put it in a short-term bearish zone, with key resistance levels at $3,300, $3,330, and $3,350. A failure to break above these levels could result in further decline towards $3,230, $3,180, and $3,080 levels. Traders are advised to monitor these support and resistance levels closely, along with the MACD and RSI indicators, to gauge the market sentiment and potential price movements in the near term.
