Key Takeaways:
- Ethereum struggled near $3,550 and saw a short-term pullback.
- ETH/USD is following a rising channel with support at $3,185 on the daily chart.
- The price must surpass the 50-day simple moving average and $3,550 to continue higher.
NEW DELHI (CoinChapter.com) — Ethereum (ETH) corrected gains and declined below $3,400. ETH could attempt another increase unless there is a close below $3,200.
Ethereum Price Reaches Inflection Zone
In the last technical analysis, we discussed why Ethereum must settle above $3,530 and the 50-day simple moving average (blue) to continue higher. The bulls made a couple of attempts to push the price above $3,530 and $3,550. They failed and ETH saw a bearish reaction, like Bitcoin.
There was a move below the $3,420 and $3,400 support levels. The price traded below the 23.6% Fib retracement level of the upward move from the $2,815 swing low to the $3,566 high.
More importantly, Ethereum is still below the 50-day simple moving average (blue) and facing heavy resistance. It seems like the price is following a rising channel with support at $3,185 on the daily chart. If there is another increase, the price could face hurdles near the 50-day simple moving average (blue) at $3,380.
The first major resistance sits near the $3,400 level. The next resistance is near the $3,550 level. A clear move above the $3,550 level could open the doors for a move toward the $3,700 level. If Ethereum bulls push the price above the $3,700 resistance, there could be a steady increase.
In the stated case, the price could rise toward the $3,880 level. Any more gains might initiate a move toward the $4,000 zone in the near term.
More Downsides In ETH?
Conversely, Ethereum might fail to settle above the 50-day simple moving average (blue) or $3,400. Immediate support is near the $3,220. The first major support sits near the channel’s trend line at $3,185. The next major support sits at $3,100.
A daily close below the $3,100 level might send ETH toward the $3,000 handle. The main uptrend support is now near the $2,820 region (a multi-touch zone). A clear downside break and close below the $2,820 support zone could spark a larger decline. The next major support is near the $2,620 level. Any more losses might send Ether toward the $2,500 support.
Overall, Ethereum price is struggling to gain bullish momentum above $3,350 and $3,400. To start a fresh increase, ETH must settle above $3,400 and the 50-day simple moving average (blue).
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