Ethereum price has started a downward correction below the $3,150 zone. ETH is currently consolidating near $3,120 and may be tempted to make a recent surge.

• Ethereum has begun a short-term downside correction below the $3,150 zone.
• The price is trading below $3,200 and the 100-hour uncomplicated moving average.
• A short-term contracting triangle is forming on the hourly chart of ETH/USD (data intake via Kraken) with resistance at $3,120.
• The pair could start a recent rally if it remains stable above the $3,040 zone.

Ethereum price is eyeing a fresh surge

Ethereum price did not start a recent rally above the $3,250 zone and began a downward correction just like Bitcoin. ETH fell below the $3,150 and $3,120 support levels.

The bears even pushed the price below the $3,040 zone. It tested the $3,000 support zone. The lowest level was $3,016 and the price is currently consolidating losses. The stock has climbed above the 23.6% Fib retracement level, the result of a downward move from a high of $3,340 to a low of $3,016.

Ethereum price is currently trading below $3,200 and the 100-hour uncomplicated moving average. On the downside, the price seems to be facing headwinds near the $3,120 level. A short-term contracting triangle is also forming on the hourly chart of ETH/USD with resistance at $3,120.

The first major resistance is located near the $3,180 level or the 50% Fib retracement level in a move down from a high at $3,340 to a low at $3,016. The main resistance is currently forming near $3,220.

A clear move above the resistance at $3,220 could push the price towards the resistance at $3,320. An upward break above the resistance at $3,320 could trigger further gains in the coming sessions. In the given case, Ether may rise towards the resistance zone at $3,450.

Another ETH drop?

If Ethereum fails to break through the resistance at $3,320, another decline could begin. Initial downside support is near the $3,060 level. The first major support is located near the $3,040 zone.

A clear move below the support at $3,040 could push the price towards $2,980. Any further losses could push the price towards the $2,920 support level in the near future. The next key support is at $2,880.

Technical indicators

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

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

Main support level – USD 3,040

Major resistance level – $3,120