Ethereum is attempting an upside correction against the US dollar above $3,000 per coin. To continue rising, the price of ETH must break through $3,130 and the 100 hourly SMA. From the $2,950 level, ETHEREUM began an upward correction.

The price remains below $3,100 and the 100 hourly SMA. On the hourly timeframe of ETH/USD, there was a break above a key bearish trend line with resistance near $3,035. The pair may recover, but gains may be limited near the $3,130 level.

Ethereum’s Price is Facing Difficulties

Ethereum formed a base above the $2,950 level and began a new upward trend. ETH broke through the $3,000 resistance level, moving into the short-term positive zone.

The price has risen above the $3,020 resistance level. Ether managed to break through the 23.6 percent Fib retracement level of the key drop from the $3,310 swing high to the $2,951 low. Moreover, on the hourly chart of ETH/USD, there was a break above a key bearish trend line with resistance near $3,035.

The price has now risen above the $3,050 mark. On the upside, an initial resistance level is seen near $3,085 USD. The next significant resistance is near $3,130 and the 100 hourly simple moving average.

The key drop’s 50% Fib retracement level from the $3,310 swing high to the $2,951 low is also close to $3,130. A close above $3,130 and the 100 hourly simple moving average could signal the start of a decent recovery wave.

The next significant resistance mark could be around $3,170. A clear break above the $3,170 resistance level could pave the way for a break above the $3,200 level. The price could rise above the $3,250 mark in the aforementioned scenario.

A New Drop-in ETH?

If Ethereum does not begin a recovery wave above $3,130, it may start a new decline. On the downside, an initial support level is near $3,020. The next significant support level is around $2,950. If the price falls below the $2,950 support level, it may begin to fall again. However, there is a risk of moving towards the $2,840 level in this scenario.