Ethereum Price Dips Again – Is This Bulls Trap or Technical Correction?

11 months ago 47

Ethereum price is correcting gains from the $2,350 resistance zone. ETH could start a fresh increase if it stays above the $2,200 support zone. Ethereum started a downside correction from the $2,350 resistance zone. The price is trading near...

Ethereum price is correcting gains from the $2,350 resistance zone. ETH could start a fresh increase if it stays above the $2,200 support zone.

Ethereum started a downside correction from the $2,350 resistance zone. The price is trading near $2,275 and the 100-hourly Simple Moving Average. There is a key bearish trend line forming with resistance near $2,285 on the hourly chart of ETH/USD (data feed via Kraken). The pair could attempt a fresh increase unless there is a close below $2,200.

Ethereum Price Remains Supported

Ethereum price failed again to gain pace for a move above the $2,350 level. ETH formed a short-term near $2,350 and recently started a downside correction, like Bitcoin.

There was a move below the $2,320 and $2,300 levels. The price even spiked below $2,250. A low was formed near $2,247 and the price is now correcting higher. There was a move above the $2,265 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $2,326 swing high to the $2,247 low.

Ethereum is now near $2,275 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $2,285 level. There is also a key bearish trend line forming with resistance near $2,285 on the hourly chart of ETH/USD.

The trend line is close to the 50% Fib retracement level of the downward move from the $2,326 swing high to the $2,247 low. A close above the $2,285 resistance could send the price toward $2,350.

Ethereum Price

Source: ETHUSD on TradingView.com

A clear move above the $2,350 zone could start a major increase. The next resistance sits at $2,420. Any more gains could start a wave toward the $2,500 level, above which Ethereum might rally and test the $2,550 zone.

More Losses in ETH?

If Ethereum fails to clear the $2,285 resistance, it could continue to move down. Initial support on the downside is near the $2,220 level.

The first key support could be the $2,200 zone. A downside break and a close below $2,200 might send the price further lower. In the stated case, Ether could revisit the $2,170 support. Any more losses might send the price toward the $2,120 level in the coming sessions.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bullish zone.

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

Major Support Level – $2,200

Major Resistance Level – $2,285


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