- Ethereum price started an upside correction above $3,000 against the US Dollar.
- ETH price is now trading below $3,100 and the 55 simple moving average (4-hours).
- There is a key contracting triangle forming with resistance near $3,150 on the 4-hours chart (data feed from Coinbase).
- The pair could start a fresh decline if there is no break above $3,160 in the near term.
Ethereum price is showing bearish signs below $3,160 against the US Dollar. ETH/USD could resume its decline as long as it is below $3,160.
Ethereum Price Analysis
In the past few days, ethereum saw a major decline below the $3,200 zone against the US Dollar. ETH price broke the $3,000 support zone and the 55 simple moving average (4-hours).
The price even traded below the $2,800 and $2,700 levels. The recent low was formed near $2,651 before the price started an upside correction. There was a recovery wave above the $2,800 and $2,950 levels. The price cleared the 23.6% Fib retracement level of the main decline from the $3,675 swing high to $2,651 low.
The price even spiked above the $3,100 level and the 55 simple moving average (4-hours). However, the bears protected the $3,160 resistance zone.
It seems like the price failed to clear the 50% Fib retracement level of the main decline from the $3,675 swing high to $2,651 low. It is now trading below $3,100 and the 55 simple moving average (4-hours). There is also a key contracting triangle forming with resistance near $3,150 on the 4-hours chart.
An immediate resistance is near the $3,000 level. The main resistance is now forming near the $3,160 level. A close above the $3,160 level could open the doors for a fresh increase. On the downside, an immediate support is near the $2,890 level.
The main support is now near the $2,800 level. If there is a downside break below the $2,800 support, the price could retest $2,650. Any more losses could lead the price towards $2,500.
Looking at the chart, Ethereum price is clearly trading below the $3,100 zone and the 55 simple moving average (4-hours). Overall, ether price could start a fresh decline if there is no break above $3,160 in the near term.
Technical indicators
4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is still below the 50 level.
Key Support Levels – $2,890, followed by the $2,800 zone.
Key Resistance$ Levels – $3,100 and $3,160.
