Ethereum Price Fails to Hold Momentum Above $3K — Correction Ahead?

Ethereum price started a fresh increase above the $3,000 zone. ETH is now consolidating gains and might correct lower toward the $2,900 zone.

• Ethereum started a fresh increase above the $3,000 level.
• The price is trading near $2,940 and the 100-hourly Simple Moving Average.
• There was a break below a key bullish trend line with support at $2,980 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it remains supported above the $2,900 zone in the near term.

Ethereum Price Rallies Above $3,000

Ethereum price started a fresh increase above the $2,800 zone, like Bitcoin. ETH price gained pace for a move above the $2,880 resistance zone and entered a positive zone.

The bulls even pumped the price above $2,920. Finally, it tested the $3,080 zone. A high was formed at $3,081 and the price is now consolidating gains. There was a move below the 50% Fib retracement level of the upward move from the $2,905 swing low to the $3,081 high.

Besides, there was a break below a key bullish trend line with support at $2,980 on the hourly chart of ETH/USD. Ethereum price is now trading near $2,940 and the 100-hourly Simple Moving Average.

On the upside, the price could face resistance near the $2,980 level. The next key resistance is near the $3,000 level. The first major resistance is near the $3,040 level. A clear move above the $3,040 resistance might send the price toward the $3,080 resistance.

An upside break above the $3,080 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,200 resistance zone or even $3,220 in the near term.

Are Downsides Supported In ETH?

If Ethereum fails to clear the $3,000 resistance, it could start a downside correction. Initial support on the downside is near the $2,940 level and the 76.4% Fib retracement level of the upward move from the $2,905 swing low to the $3,081 high. The first major support sits near the $2,900 zone.

A clear move below the $2,900 support might push the price toward the $2,800 support. Any more losses might send the price toward the $2,720 support level in the near term. The next key support sits at $2,650.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

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

Major Support Level – $2,900

Major Resistance Level – $3,000

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