Ethereum Consolidates, Why Bulls May Head For A New Rally

Ethereum is consolidating around the $ 3,000 zone against the US dollar. ETH price could start a new rally if it surpasses $ 3020 and $ 3050.

  • Ethereum corrected lower but found support around the $ 2,950 zone.
  • The price is now trading above $ 2,950 and the 100-hour simple moving average.
  • On the hourly chart, ETH / USD is forming a key contracting triangle with resistance around $ 3,020 (data flow through Kraken).
  • The pair may start a steady rise if it breaks the resistance levels of $ 3,020 and $ 3,050 in the near future.

Ethereum Price Stuck Below Resistance

Ethereum has surpassed the $ 3,000 level. ETH even tested the $ 3,050 zone before correcting lower, just like Bitcoin.

There was a downward correction below the $ 3,000 support level. There was a break below the 23.6% Fibonacci retracement level of the upward movement from the swing low of $ 2,782 to the low of $ 3,050. However, the drawbacks were limited to below the $ 2,950 mark.

Ether is currently trading above $ 2,950 and the 100-hour simple moving average. Also on the hourly ETH / USD chart, a key contracting triangle is forming with resistance around $ 3,020.

Ethereum price

Source: ETHUSD on TradingView.com

Immediate upside resistance is around the $ 3,020 level. The first major resistance is around the $ 3,050 level. A break above the $ 3050 level could start a steady rally. The next major resistance is still around the $ 3150 and $ 3165 levels, above which the price could accelerate.

Another drop in ETH?

If Ethereum is unable to continue moving above the $ 3020 and $ 3050 resistance levels, it may start a new downward correction. Initial support on the downside is near the $ 2,980 level.

The first key support is currently forming around the $ 2,950 level and the 100-hour SMA. If Ether does not hold above $ 2,950, there is a risk of a sharp drop. In this case, the price may drop to the level of $ 2800.

Technical Indicators

Hourly MACDMACD for ETH / USD is now losing pace in the bullish zone.

Hourly RSIThe RSI for ETH / USD is still above the 50 mark.

Major Support Level – $ 2,950

Major Resistance Level – $ 3050.

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