Ethereum (ETH) Corrects Lower, Why 100 SMA Could Trigger Fresh Rally

Ethereum extended its rise and traded close to $2,900 against the US Dollar. ETH price is correcting gains and it is likely to remain strong above the 100 hourly SMA

Ethereum failed to clear the $2,900 level and it corrected lower from $2,885.
The price is still holding the $2,700 support and the 100 hourly simple moving average.
There was a break below a short-term bullish trend line with support near $2,750 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a strong increase as long as there is no break below the 100 hourly SMA and $2,650.

Ethereum Price Is Holding Support
Yesterday, ethereum started a fresh increase above the $2,650 resistance zone. ETH gained pace above the $2,700 and $2,750 levels. There was also a break above the $2,800 level and the 100 hourly simple moving average.
However, the price failed to continue higher above $2,900. A high was formed near $2,886 and the price recently started a fresh decline. There was a break below the $2,800 support zone. Ether price even traded below the 23.6% Fib retracement level of the upward move from the $2,530 swing low to $2,996 high.
There was a break below a short-term bullish trend line with support near $2,750 on the hourly chart of ETH/USD. The pair is now testing the 50% Fib retracement level of the upward move from the $2,530 swing low to $2,996 high.

Source: ETHUSD on TradingView.com
It is also holding the $2,700 support and the 100 hourly simple moving average. An initial resistance on the upside is near the $2,780 and $2,800 levels. The first major resistance is near the $2,850 level.
The main breakout resistance is now forming near the $2,900 level. A close above the $2,900 level will most likely call for a test of the $3,000 barrier in the near term.
Dips Supported in ETH?
If Ethereum fails to clear the $2,800 and $2,850 resistance levels, it could extend its decline. An initial support on the downside is near the $2,700 level.
The main support is now forming near the $2,680 level and the 100 hourly SMA. A downside break below $2,680 and $2,650 could open the doors for a larger decline. In the stated case, ether price might revisit USD 2,500.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level.
Major Support Level – $2,650
Major Resistance Level – $2,850

Ora Goodwin
Ora Goodwin
I am a well-known and respected author in the cryptocurrency field. I have been writing about Bitcoin and other digital currencies for over 5 years, and my work has appeared in some of the most respected publications in the space. I am also a regular speaker at industry events, and my insights into the crypto market are highly sought after by both media and investors. In addition to my writing and speaking engagements, I am also an active advisor to several blockchain startups, and I sit on the board of directors for the Blockchain Education Network.

Similar Articles

Most Popular

Lyber IDO Concludes, Paving the Way for Digital Asset Innovation in Europe

Lyber is celebrating the successful completion of its IDO, a significant milestone underscored by robust community support and a clear demand for innovative blockchain...

Egochain IDO Concludes, Paving The Way to Revolutionize the EV Industry With Blockchain Technology

Supported by strong community enthusiasm and underlining the demand for blockchain solutions in the electric vehicle market, Egochain has successfully completed its Initial DEX...

OkayCoin Releases Expert Guide to Earning Passive Income Through Crypto Staking rewards

Los Angeles, USA — OkayCoin, a pioneer in crypto staking solutions, proudly announces the release of its comprehensive guide to cryptocurrency staking, aimed at...

Trailblaze Marks its IDO Milestone with Platform Launch, Setting New Standards in the Launchpad Industry

Trailblaze's IDO, heralded by significant community support, showcases a vigorous drive for innovation within the launchpad sector. This pivotal achievement emphasizes a progressive shift...

Maximizing Ethereum Staking Rewards: Tips and Tricks

Are you looking to maximize the potential of your Ethereum holdings? Stake Ethereum using OkayCoin and take advantage of the benefits of decentralized finance...

Okratech Token Launches Ambitious Expansion Initiatives with Web3 App Store and New Strategic Partnerships

June 5, 2024 – Okratech Token (ORT), an established entity in the blockchain industry, is making significant strides with the launch of new products...

CryptoHeap Provides Round-the-Clock Support During Bull Run

As the cryptocurrency markets continue to exhibit bullish behaviour, CryptoHeap, a frontrunner in cryptocurrency staking services, is excited to announce its commitment to providing...

Mirada AI: Pioneering Decentralized AI Solutions

Dubai, UAE / ACCESSWIRE / 28 MAY, 2024: In an era where artificial intelligence (AI) is predominantly centralized, Mirada AI emerges as a beacon...