Ethereum Corrects Losses, Why 100 SMA Is The Key


Ethereum found bids near the $3,140 region and corrected higher against the US Dollar. ETH price must cross $3,325 and the 100 hourly SMA to start a decent rally.

  • Ethereum traded as low as $3,143 and is currently correcting higher.
  • The price is now trading below $3,300 and the 100 hourly simple moving average.
  • There is a short term bullish channel forming with resistance near $3,300 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must cross $3,300 and the 100 hourly SMA to gain bullish momentum.

Ethereum price eyes recovery

Ethereum Traded as low as $3,143 before the bulls appear. ETH formed a base above $3,150 and started a nice bullish move.

There was a break above the $3,200 resistance level. Ether price was able to surpass the 23.6% Fib retracement level of the main 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, we see initial resistance near the $3,300 level. There is also a short-term ascending channel forming with resistance near $3,300 on the hourly chart of ETH/USD.

The next major resistance is near the $3,325 level and 100-hour simple moving average. A clear move above $3,325 could push the price above the 50% Fib retracement level of the major decline from the $3,550 swing high to $3,143 low.

Ethereum price

Source: ETHUSD on TradingView.com

If the Ether price settles above the $3,325 and $3,345 resistance levels, it may start a steady increase. In the mentioned case, the price could rise above the $3,400 area. The next major barrier is near the $3,450 level and the connecting downtrend line.

A new drop in ETH?

If Ethereum fails to start a new rally above the $3,325 level, it may start another major decline. There is initial support on the downside near the $3,230 region.

The next major support is near the $3,200 level. If there is a downside break below the $3,200 support, the price may resume its decline. In the aforementioned case, the price may drop below the low of $3,143.

Technical Indicators

MACD per hourThe MACD for ETH/USD is slowly moving into the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 level.

Key Support Level – $3200

Key Resistance Level – $3,325



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