Ethereum Price Faces Another Rejection: Will Momentum Return?

Ethereum price started a downside correction from the $3,500 resistance. ETH is consolidating above $3,120 and facing many hurdles.

Ethereum failed to gain pace for a close above $3,500 and corrected gains.
The price is trading below $3,320 and the 100-hourly Simple Moving Average.
There is a short-term connecting bearish trend line forming with resistance at $3,380 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start another increase if it clears the $3,300 resistance level.

Ethereum Price Dips To Support

Ethereum price started a decent upward move above the $3,320 level but upsides were limited compared to Bitcoin. ETH failed to gain pace for a close above $3,500 and corrected gains.

There was a move below the $3,320 and $3,300 support levels. A low was formed at $3,141 and the price is now consolidating losses. There was a minor increase above the $3,200 level. The price climbed above the 23.6% Fib retracement level of the recent decline from the $3,445 swing high to the $3,141 low.

Ethereum price is now trading below $3,280 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,240 level. The first major resistance is near the $3,300 level or the 50% Fib retracement level of the recent decline from the $3,445 swing high to the $3,141 low.

The main resistance is now forming near $3,380. There is also a short-term connecting bearish trend line forming with resistance at $3,380 on the hourly chart of ETH/USD. A clear move above the $3,380 resistance might send the price toward the $3,450 resistance.

An upside break above the $3,450 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,500 resistance zone or even $3,550 in the near term.

More Losses In ETH?

If Ethereum fails to clear the $3,300 resistance, it could start another decline. Initial support on the downside is near the $3,150 level. The first major support sits near the $3,120.

A clear move below the $3,120 support might push the price toward the $3,050 support. Any more losses might send the price toward the $3,020 support level in the near term. The next key support sits at $3,000.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,120

Major Resistance Level – $3,300