Ethereum (ETH) Corrects Lower, Why 100 SMA Could Trigger Fresh Rally

Ethereum extended its rise and traded close to $2,900 against the US Dollar. ETH price is correcting gains and it is likely to remain strong above the 100 hourly SMA

  • Ethereum failed to clear the $2,900 level and it corrected lower from $2,885.
  • The price is still holding the $2,700 support and the 100 hourly simple moving average.
  • There was a break below a short-term bullish trend line with support near $2,750 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a strong increase as long as there is no break below the 100 hourly SMA and $2,650.

Ethereum Price Is Holding Support

Yesterday, ethereum started a fresh increase above the $2,650 resistance zone. ETH gained pace above the $2,700 and $2,750 levels. There was also a break above the $2,800 level and the 100 hourly simple moving average.

However, the price failed to continue higher above $2,900. A high was formed near $2,886 and the price recently started a fresh decline. There was a break below the $2,800 support zone. Ether price even traded below the 23.6% Fib retracement level of the upward move from the $2,530 swing low to $2,996 high.

There was a break below a short-term bullish trend 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 is also holding the $2,700 support and the 100 hourly simple moving average. An initial resistance on the upside is near the $2,780 and $2,800 levels. The first major resistance is near the $2,850 level.

The main breakout resistance is now forming near the $2,900 level. A close above the $2,900 level will most likely call for a test of the $3,000 barrier in the near term.

Dips Supported in ETH?

If Ethereum fails to clear the $2,800 and $2,850 resistance levels, it could extend its decline. An initial support on the downside is near the $2,700 level.

The main support is now forming near the $2,680 level and the 100 hourly SMA. A downside break below $2,680 and $2,650 could open the doors for a larger decline. In the stated case, ether price might revisit USD 2,500.

Technical Indicators

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

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

Major Support Level – $2,650

Major Resistance Level – $2,850

Related Articles

Crypto Lender Celsius Admits Losses in $120M BadgerDAO Hack

Crypto lender Celsius Network confirmed the company has lost money from the latest decentralized finance (DeFi) hack on BadgerDAO, a lending platform that offers...

Decentralized Governance: On Quadratic Payments

Quadratic voting, funding and attention purchase are buzzwords that have been gaining popularity over the last few years. The ultimate effect of these...

FEI up +2.50%, BTC -16.31%, Tether is The Coin of The Day – Daily Market Update for Dec 04, 2021 | CoinCodex

Key highlights:The total cryptocurrency market cap decreased from $ 2.68T to $ 2.26T in the past 24 hours, representing a -15.63% changeThe Bitcoin price at press...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles

Crypto Lender Celsius Admits Losses in $120M BadgerDAO Hack

Crypto lender Celsius Network confirmed the company has lost money from the latest decentralized finance (DeFi) hack on BadgerDAO, a lending platform that offers...

Decentralized Governance: On Quadratic Payments

Quadratic voting, funding and attention purchase are buzzwords that have been gaining popularity over the last few years. The ultimate effect of these...

FEI up +2.50%, BTC -16.31%, Tether is The Coin of The Day – Daily Market Update for Dec 04, 2021 | CoinCodex

Key highlights:The total cryptocurrency market cap decreased from $ 2.68T to $ 2.26T in the past 24 hours, representing a -15.63% changeThe Bitcoin price at press...

GXS Token Skyrocketed 800% In Just Two Trading Days; know Why

The GXS coin showed a sudden surge in its price where it gained more than 800% in just two trading days. This price jump...

CoinDesk 20 Update: ATOM, ICP and SOL Are In; AAVE, GRT and UNI Are Out

Cosmos’ Atom, Solana’s native currency and Internet Computer (formerly Dfinity) all entered the CoinDesk 20 in this quarter’s reconstitution, in a shift where Web...