TA: Ethereum Corrects Gains, Why ETH Could Restart Increase

Aayush Jindal
9 Feb, 2022

(Source: investing.com) Ethereum struggled to gain momentum above the $3,200 resistance against the US Dollar. ETH price is correcting gains, but it might find support near $3,030.

Ethereum started a downside correction after it spiked towards the $3,240 level.
The price is still trading above $3,000 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $3,160 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above $3,030 and $3,000 to start a fresh increase in the near term.

Ethereum Price Remains Supported

Ethereum remained well bid above the $3,000 support zone. ETH extended the increase and was able to clear the $3,200 resistance. It traded as high as $3,235 before there was a downside correction.

There was a move below the $3,200 and $3,150 levels. Ether price even declined below the 50% Fib retracement level of the upward move from the $2,952 swing low to $3,325 high. Besides, there was a break below a key bullish trend line with support near $3,160 on the hourly chart of ETH/USD.

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However, the price is still trading above $3,000 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $3,150 level.

Source: ETHUSD on TradingView.com

The first major resistance is near the $3,200 level. A successful close above $3,200 might start another increase. In the stated case, the price could surpass the $3,235 high. The next major hurdle is near the $3,350 level, above which the bulls might aim a test of $3,500.

Downside Break in ETH?

If Ethereum fails to continue higher above $3,160 or $3,200, it could continue to move down. An initial support on the downside is near the $3,080 level and a rising channel on the same chart.

The first major support is near the $3,030 level and the 100 hourly simple moving average. It is near the 76.4% Fib retracement level of the upward move from the $2,952 swing low to $3,325 high. A downside break below the $3,030 level might push the price below $3,000. The next major support is near the $2,950 level, below which there is a risk of a larger decline.