Ethereum price has started a downward correction from the $3,500 resistance zone. ETH has fallen below $3,440 and may struggle to stay above $3,380.

• Ethereum corrects gains from the $3,500 zone.
• The price remains above $3,400 and the 100-hour uncomplicated moving average.
• On the hourly chart of the ETH/USD pair (data via Kraken), there was a breakout of the connecting rising trend line with the support level at USD 3,420.
• If the price closes below the support level at USD 3,350, the pair may continue to decline.

Ethereum price drops from $3,500

Ethereum price started a downward correction from the $3,500 resistance zone. ETH fell below the $3,450 and $3,440 support levels to enter a short-term bearish zone, similar to Bitcoin.

On the hourly chart of ETH/USD, there was a breakout of the connecting bullish trend line with support at $3,420. The pair even fell below $3,400 and the 23.6% Fibonacci retracement level of the uptrend from the swing low of $3,048 to the high of $3,516.

Ethereum is now trading above $3,380 and the 100-hour uncomplicated moving average. If the price holds above the 100-hour uncomplicated moving average, it could try a modern uptrend. On the other hand, the price is facing resistance near the $3,440 level.

The first major resistance is near the $3450 level. The next major obstacle is near the $3500 level. A close above the $3500 level could take Ether towards the $3550 resistance level. The next key resistance is near the $3620 level. A break of the $3620 resistance upwards could take the price higher towards the $3750 resistance zone in the coming days.

More ETH Cons?

If Ethereum fails to break through the $3,440 resistance, it could continue to decline. Initial downside support is near $3,400 and the 100-hour uncomplicated moving average. The first major support is near the $3,350 zone.

A clear move below the $3,350 support could push the price towards $3,280 and the 50% Fibonacci retracement level of the uptrend from the $3,048 swing low to the $3,516 high. Any further losses could send the price towards the $3,200 support level in the near future. The next key support is at $3,150.

Technical indicators

Hourly MACD – MACD for ETH/USD is losing momentum in the growth zone.

Hourly RSI – The RSI for the ETH/USD pair is currently below the 50 level.

Major Support Level – $3,350

Main resistance level – $3440