The Ethereum price, currently consolidating near the $3,120 mark, began a short-term downside correction, falling beneath the $3,150 zone. Currently trading below the $3,200 mark and the 100-hourly Simple Moving Average, Ethereum appears to be forming a short-term contracting triangle, with resistance at $3,120 on the hourly chart of the ETH/USD data feed via Kraken. Provided the pair remains stable above the $3,040 zone, a fresh price increase could be on the cards.
The Ethereum price failed to initiate a new increase above the $3,250 zone, instead embarking on a downside correction akin to Bitcoin. The cryptocurrency fell below the $3,150 and $3,120 support levels, with the bears pushing the price beneath the $3,040 zone to test the $3,000 support zone. A low was formed at $3,016, with Ethereum now consolidating losses, having climbed above the 23.6% Fib retracement level of the downward move from the $3,340 swing high to the $3,016 low.
Potential hurdles to a price increase exist near the $3,120 level, with a short-term contracting triangle forming at this resistance point on the hourly chart of ETH/USD. The first major resistance lies near the $3,180 level, or the 50% Fib retracement level of the downward move from the $3,340 swing high to the $3,016 low. The primary resistance is now forming near the $3,220 mark.
Should Ethereum clear the $3,220 resistance, the price could move towards the $3,320 resistance. A break above this resistance could pave the way for further gains in the forthcoming sessions. In this scenario, Ether could potentially rise towards the $3,450 resistance zone.
However, should Ethereum fail to clear the $3,320 resistance, another decline could be on the horizon. Initial support on the downside is near the $3,060 level, with the first major support located near the $3,040 zone. A move below this support could push the price towards $2,980, and further losses could see the price fall towards the $2,920 support level in the near term. The next key support lies at $2,880.
Technical indicators suggest the MACD for ETH/USD is losing momentum in the bearish zone, with the RSI for ETH/USD currently below the 50 zone. The major support and resistance levels are $3,040 and $3,120 respectively. As the cryptocurrency market continues to evolve, investors and traders will be closely monitoring the price movement of Ethereum and other digital currencies.
