Ethereum Slips to $3.1K – Can Double Bottom Drive Uptrend?
Ethereum found bids near the $3,140 level and has since corrected higher against the US Dollar. To begin a decent increase, the ETH price
Ethereum found bids near the $3,140 level and has since corrected higher against the US Dollar. To begin a decent increase, the ETH price must be evident at $3,325 and the 100 hourly SMA. Ethereum traded as low as $3,143 before reversing course. Price has fallen below $3,300 and the 100 hourly simple moving average.
On the hourly timeframe of ETH/USD, a short-term rising channel is forming with resistance near $3,300. The pair must clear $3,300 and the 100 hourly SMA to regain bullish momentum.
Ethereum’s Price is Set to Recover
Before the bulls appeared, Ethereum traded as low as $3,143. ETH established a base above $3,150 and began a steady upward movement. A break above the $3,200 resistance level occurred. Ether price broke through the 23.6 percent Fib retracement level of the pivotal drop from the $3,550 swing high to the $3,143 low. It remains, however, below $3,300 and the 100 hourly simple moving average.
On the upside, an initial resistance level is located near $3,300. On the hourly timeframe of ETH/USD, a short-term rising channel is also forming with resistance near $3,300.
The next significant resistance level is around $3,325 and the 100 hourly simple moving average. A sustained move above $3,325 could even take the price above the 50% Fib retracement level of the critical drop from the $3,550 swing high to the $3,143 low.
If Ether’s price stabilizes above the $3,325 and $3,345 resistance levels, it may begin a steady upward trend. The price could rise above the $3,400 level in the scenario above. The next significant resistance level is near the $3,450 level, connected by a bearish trend line.
Is There a New Decline in ETH?
If Ethereum cannot resume growth above the $3,325 level, it may begin another significant decline. On the downside, initial support is located near the $3,230 level.
The next significant support level is near $3,200. If the price breaks below the $3,200 support level, it may resume its decline. The price could even fall below the $3,143 low in the scenario above.
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