By Nathan Ferguson
- ETH kick-started a downward correction following a surge past the $3,270 mark.
- Now, the alt trades beneath $3,100 and 100Hr SMA.
- Data from Kraken shows a break beneath a massive bullish line on ETH/USD’s hourly price chart.
- The pair should stay beyond $3,030 and $3,020 to prevent further downtrends in the short term.
Ethereum rallied high towards $3,300 but could not extend its leg-up. The altcoin corrects its gains and might plummet below the $3K level.
ETH Remains at Downside Risk
Ethereum experienced an extended surge past the 43,200 mark. Ethereum even surged past $3,250 and 100hr SMA. Nevertheless, Ether bulls could not push beyond $3,250. The leading alternative coin formed a high near $3,283 before dropping. ETH plummeted beneath $3.2K and $3,150 support zones. Moreover, the alt broke beneath a massive bullish trend-line on Ether’s hourly chart.
The pair stabilized under $3,100 and 100hr Simple Moving Average. It also fell under the support of $3,030. ETH printed a low of around 43,005 and consolidates the losses at the moment. The closest resistance stands at $3,080. The level stands at 23.6% Fibonacci retracement mark of the latest fall from a swing peak of $3,283 towards the $3,005 lows. The initial massive resistance locates around $3,120 and a 100-hourly Simple Moving Average.
The primary resistance stands at $3,150, the level coinciding with 50% Fibonacci retracement of the decline to $3,005 from the highs of $3,283. A decisive close beyond $3,150 may trigger another upsurge. In such a case, the token can rise past $3,220, then $3,250.
Further Drops in Ethereum?
Ethereum might extend its downward movement if it fails to trigger an upsurge beyond $3,120 and $3,150. With that, the alt will discover the first support zone at $3,030. Additional support floor would appear at $2,950. Losing this level might lead to a drop to $2,800, beneath which ETH can incur a massive downswing.
The latest downbeat in the crypto space ruined the ongoing upward rally. Bitcoin failed to rally past the resistance of $45K, changing hands near $43,429 at this publication. However, analysts pointed out that digital assets will retain their bullish structures despite the drop.