Ethereum Steadies Above $3K, Why Upsides Could be Capped


Ethereum is attempting an upward correction above $3000 against the US Dollar. ETH price must cross $3,130 and hourly 100 SMA to continue higher.

  • Ethereum started an upward correction from the $2,950 area.
  • The price is still trading below $3,100 and the 100 hourly simple moving average.
  • There was a break above the major downtrend line with resistance near $3,035 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could recover, but the rally could be capped near the $3,130 level.

Ethereum price faces hurdles

Ethereum formed a base above the $2,950 level and started a new rally. ETH file smashed $3,000 resistance area To move into short term positive territory.

There was a move above the $3,020 resistance. Ether was able to surpass the 23.6% Fib retracement level of the main decline from the $3,310 swing high to $2,951 low. Besides, there was a break above the major downtrend line with resistance near $3,035 on the hourly chart of ETH/USD.

The price is now trading above the $3,050 level. On the upside, we see initial resistance near the $3,085 level. The next major resistance is near the $3,130 level and 100-hour simple moving average.

The 50% Fib retracement level of the major decline from the $3,310 swing high to $2,951 is also near the $3,130 level. A close above $3,130 and the 100 hourly simple moving average might start a good recovery wave.

Ethereum price

Source: ETHUSD on TradingView.com

The next major resistance might be near $3,170. An apparent move above the $3,170 resistance could set the pace for a move above the $3,200 level. In the mentioned case, the price could rise above the $3250 area.

A new drop in ETH?

If Ethereum fails to start a recovery wave above $3,130, it may start a new decline. There is initial support on the downside near the $3,020 region.

The next major support is near the $2,950 level. If there is a downside break below the $2950 support, the price may start to decline again. In this scenario, there is a risk of a move towards the $2,840 level.

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.

Main Support Level – $2950

Key Resistance Level – $3,130



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