Ethereum extended its rally and was trading near $2900 against the US Dollar. ETH price corrects gains and is likely to stay strong above the hourly 100 SMA
- Ethereum failed to clear the $2,900 level and corrected lower from $2,885.
- The price still holds the $2700 support and the 100 hourly simple moving average.
- There was a break below the short-term uptrend line with support near $2,750 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair can start a strong increase as long as there is no break below the 100 hourly simple moving average and $2650.
Ethereum price supported
Yesterday, Ethereum started a new rally above the $2,650 resistance area. ETH gained above $2,700 and $2,750. There was also a breakout above the $2800 level and Simple moving average per 100 hours.
However, the price failed to continue rising above $2900. A high formed near $2,886 and the price recently started a new decline. There was a break below the $2800 support area. Ether price has even traded below the 23.6% Fibonacci retracement level of… upward movement From a swing low of $2,530 to a high of $2,996.
There was a break below the short-term uptrend line with support near $2,750 on the hourly chart of ETH/USD. The pair is now testing the 50% Fib retracement level of the upward move from the $2,530 swing low to $2,996 high.
Source: ETHUSD on TradingView.com
It also holds the $2700 support and the 100 hourly simple moving average. There is an initial resistance on the upside near the $2,780 and $2,800 levels. The first major resistance is near the $2,850 level.
The major breakout resistance is now forming near the $2900 level. A close above $2900 is likely to require a test of the $3000 barrier in the near term.
Support dips in ETH?
If Ethereum fails to surpass the $2,800 and $2,850 resistance levels, its decline could extend. There is initial support on the downside near the $2700 level.
The main support is now forming near the $2,680 level and the 100 hourly simple moving average. A break-down below $2,680 and $2,650 could open the door to a larger decline. In the mentioned case, the Ether price might revisit $2,500.
MACD per hour – ETH/USD’s MACD is slowly losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level.
Key Support Level – $2,650
Key Resistance Level – $2,850