Ethereum Corrects, But Why Dips Could Be Attractive In The Short Term

Ethereum is correcting gains of $ 4,121 against the US Dollar. ETH price could start a new rally if there is a clear break above the $ 4,040 resistance.

  • Ethereum struggled to clear the $ 4,100 zone and corrected lower.
  • The price is trading just above $ 3,950 and the 100 hourly simple moving average.
  • There was a break below a key channel to the upside with support near $ 4,040 on the hourly chart of ETH / USD (data feed via Kraken).
  • The pair could start a new rally if it sustains above the $ 3,920 support and the 100 hourly SMA.

Ethereum price corrects lower

Ethereum started a steady recovery wave above the $ 3,850 and $ 4,000 resistance levels. ETH even rallied above the $ 4,050 level and the 100 hourly simple moving average.

However, the price was unable to continue higher above the $ 4,080 and $ 4,100 resistance levels. A high was formed near $ 4,121 before the price began a downward correction. There was a move below the $ 4,050 and $ 4,000 support levels.

There was also a break below a key ascending channel with support near $ 4,040 on the ETH / USD hourly chart. The pair is now trading just above $ 3,950 and the 100 hourly simple moving average.

There was a break below the 23.6% Fib retracement level of the up move from the $ 3,650 low to $ 4,121 high. An immediate resistance on the upside is near the $ 4,040 level. The next major resistance is near the $ 4,080 level. A clear move above the $ 4,080 level and the recent higher could start a further rise in the near term.

Ethereum Price

The next stop for the bulls could be $ 4,120. A close above the $ 4,120 level could possibly trigger a move towards the $ 4,250 level.

More losses in ETH?

If ethereum does not initiate a new rise above the $ 4,040 level, it could continue to decline. An initial support on the downside is near the $ 3,950 level.

Key support is now forming near the $ 3,920 level and the 100 hourly simple moving average. If there is a clear break below the $ 3,920 support, the price could extend the losses. The next major support is at $ 3,885. It is close to 50% of the Fibonacci retracement level of the up move from the $ 3,650 low to $ 4,121 high.

Technical indicators

MACD per hourThe MACD for ETH / USD is slowly losing pace in the bullish zone.

RSI per hourThe RSI for ETH / USD is now near the 50 level.

Major Support Level – $ 3,920

Major Resistance Level – $ 4,040

Source: https://www.newsbtc.com/analysis/eth/ta-ethereum-corrects-but-why-dips-could-be-attractive-in-short-term/

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