Ethereum Price Undergoes Technical Correction: Can ETH Resume Higher?

Ethereum price started a downside correction from the $3,520 zone. ETH is stable above $3,420 and might attempt another increase in the near term.

• Ethereum started a downside correction after it failed to surpass the $3,520 zone.
• The price is trading above $3,420 and the 100-hourly Simple Moving Average.
• There is a connecting bearish trend line forming with resistance near $3,470 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must clear the $3,470 and $3,520 resistance levels to continue higher.

Ethereum price started a decent upward move above the $3,420 level. ETH even cleared the $3,450 level to move into a short-term positive zone like Bitcoin.

The price even cleared the $3,500 resistance zone. A high was formed at $3,516 and the price recently started a downside correction. There was a move below the $3,480 and $3,470 levels. The price declined below the 23.6% Fib retracement level of the upward move from the $3,350 swing low to the $3,516 high.

However, the bulls seem to be active near the $3,420 support zone. They are protecting the 50% Fib retracement level of the upward move from the $3,350 swing low to the $3,516 high.

Ethereum is trading above $3,420 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $3,470 level. There is also a connecting bearish trend line forming with resistance near $3,470 on the hourly chart of ETH/USD.

The first major resistance is near the $3,500 level. The next major hurdle is near the $3,520 level. A close above the $3,520 level might send Ether toward the $3,550 resistance. The next key resistance is near $3,650. An upside break above the $3,650 resistance might send the price higher. Any more gains could send Ether toward the $3,720 resistance zone.

If Ethereum fails to clear the $3,470 resistance, it could continue to move down. Initial support on the downside is near $3,435. The first major support sits near the $3,420 zone.

A clear move below the $3,420 support might push the price toward $3,350. Any more losses might send the price toward the $3,320 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,420

Major Resistance Level – $3,470