Ethereum price extended its gains above $2,265 before starting a downward correction. ETH is now correcting gains and may find quotes near the $2,120 area.
- Ethereum started a good upward movement above the $2,250 area.
- The price is trading above the $2,150 level and the 100 hourly simple moving average.
- There is a bearish channel forming with resistance at $2,220 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new increase if it remains above the $2,120 area.
Ethereum price corrects some gains
Ethereum price remained stable above $2,150 and started a good upward movement Bitcoin. ETH price rose above the $2,165 and $2,200 resistance levels.
The bulls pumped the price above $2,250. A high was formed at $2,274 before the price began a downward correction. The price fell to less than $2,200. There was a move below the 38.2% Fib retracement level of the upward move from the swing low of $2,059 to the swing high of $2,274.
Ethereum price is now trading above $2,150 and 100 hourly simple moving average. If the bulls keep moving above the $2,120 level, the price may try to rise again.
Immediate resistance is emerging near the $2,200 level. The first major resistance is near the $2,220 level. There is also a bearish channel forming with resistance at $2,220 on the hourly chart of the ETH/USD pair. The next major resistance is near the $2,250 level. A clear move above the $2,250 resistance level could send the price towards the $2,320 resistance level. A bullish break above the $2,320 area may require further gains in the coming days. In the mentioned case, Ether could rise towards the $2,400 or even $2,450 resistance area in the near term.
More losses in ETH?
If Ethereum fails to break above the $2,220 resistance level, it could start a new decline. Initial support on the downside is near the $2,165 level or the 50% Fib retracement level of the upward move from the $2,059 swing low to the $2,274 swing high.
The first major support is near the $2,120 area. A clear move below the $2,120 support level could push the price towards the $2,080 support level. Any further losses could send the price towards the $2050 area. Major support could be $2,020.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Key Support Level – $2,120
Major resistance level – $2,220
