- Ethereum price started a downside correction from the $3,350 resistance against the US Dollar.
- ETH price is now trading near $3,200 and the 55 simple moving average (4 hours).
- There is a key bullish trend line forming with support at $3,125 on the 4-hour chart (data feed from Coinbase).
- The pair could start a fresh increase if it clears the $3,350 resistance zone.
Ethereum price is declining below $3,250 against the US Dollar. ETH/USD remains at a risk of more downsides below the $3,125 support zone.
Ethereum Price Analysis
In the past few days, Ethereum started a decent increase above the $3,200 resistance zone against the US Dollar. ETH price climbed above the $3,300 and $3,320 resistance levels.
Finally, it tested the $3,350 resistance zone. A high was formed near $3,356 before there was a downside correction. There was a move below the $3,300 support zone. The price even traded below the 23.6% Fib retracement level of the upward wave from the $2,865 swing low to the $3,356 high.
ETH is now trading near $3,200 and the 55 simple moving average (4 hours). There is also a key bullish trend line forming with support at $3,125 on the 4-hour chart.
On the upside, the price is now facing resistance near the $3,240 level. The first major resistance is near the $3,350 level. The next major resistance is near the $3,500 zone. A clear move above the $3,500 resistance level might call for a fresh move to $3,680.
Any more gains could even send the price toward the $3,800 resistance zone or even $4,000 in the near term. On the downside, initial support is near the $3,125 level or the trend line and the 50% Fib retracement level of the upward wave from the $2,865 swing low to the $3,356 high.
The next major support is now near the $3,000 level. A break below the $3,000 support could push the price to $2,920. If the bulls fail to protect the $2,920 support, the price might decline toward $2,865.
Looking at the chart, Ethereum price is clearly trading near $3,200 and the 55 simple moving average (4 hours). Overall, Ether price could continue to move down if it breaks the $3,125 support zone.
Technical indicators
4 hours MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is now below the 50 level.
Key Support Levels – $3,125, followed by the $3,000 zone.
Key Resistance Levels – $3,240 and $3,350.
