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Ethereum Price Grinds Lower, Why Pullback Is Not Over Yet

Ethereum price started a downside correction below $3,650. ETH traded below $3,500 and is currently attempting a decent recovery wave in the near term.

  • Ethereum started a downside correction below the $3,700 zone.
  • The price is trading below $3,700 and the 100-hourly Simple Moving Average.
  • There is a key bearish trend line forming with resistance at $3,660 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could resume its increase if it clears the $3,750 resistance zone.

Ethereum Price Dips

Ethereum price started a downside correction below the $3,800 and $3,700 levels, like Bitcoin. ETH declined below the $3,650 support level to enter a short-term bearish zone.

It even spiked below the $3,500 support zone. A low was formed at $3,414 and the price is now attempting a recovery wave. There was a move above the $3,500 level. Ether climbed above the 23.6% Fib retracement level of the downward move from the $4,084 swing high to the $3,414 low.

Ethereum price is now trading below $3,700 and the 100-hourly Simple Moving Average. On the upside, immediate resistance is near the $3,650 level. There is also a key bearish trend line forming with resistance at $3,660 on the hourly chart of ETH/USD.

The first major resistance is near the $3,750 level or the 50% Fib retracement level of the downward move from the $4,084 swing high to the $3,414 low. The next major resistance is near $3,830, above which the price might gain bullish momentum.

Source: ETHUSD on TradingView.com

In the stated case, Ether could rally toward the $3,925 level. If there is a move above the $3,925 resistance, Ethereum could even rise toward the $4,000 resistance. Any more gains might call for a test of $4,080.

More Losses In ETH?

If Ethereum fails to clear the $3,650 resistance, it could start a fresh decline. Initial support on the downside is near the $3,520 level.

The first major support is near the $3,500 zone. The next key support could be the $3,420 zone. A clear move below the $3,420 support might send the price toward $3,350. Any more losses might send the price toward the $3,250 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bearish zone.

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

Major Support Level – $3,500

Major Resistance Level – $3,650

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