Ethereum Price Hints At Potential Correction, Buy The Dip?

by | Dec 6, 2022 | Uncategorized

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Ethereum failed again to settle above the $1,300 resistance against the US Dollar. ETH is moving lower and might soon test the $1,220 support zone.

  • Ethereum attempted another upside break above $1,300, but failed.
  • The price is now trading below $1,280 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $1,272 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct further lower, but the $1,220 support is the key.

Ethereum Price Corrects Lower

Ethereum price made another attempt to surpass the $1,300 resistance zone. However, ETH struggled to gain momentum above the $1,300 level. A high was formed near $1,304 and the price started a downside correction, similar to bitcoin.

The price declined below the $1,280 support zone and the 100 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near $1,272 on the hourly chart of ETH/USD.

Ether price traded as low as $1,248 and is currently consolidating losses. There was a minor increase above the $1,260 level. The price climbed above the 23.6% Fib retracement level of the recent decline from the $1,304 swing high to $1,248 low.

An immediate resistance on the upside is near the $1,270 level and the 100 hourly simple moving average. The first major resistance is near the $1,275 level. It is near the 50% Fib retracement level of the recent decline from the $1,304 swing high to $1,248 low.

Ethereum Price

Source: ETHUSD on TradingView.com

A close above the $1,275 resistance might send the price further higher. The next major resistance is near the $1,300 level, above which ether price might test $1,320. Any more gains might send the price towards the $1,400 resistance zone.

Retest of a Key Support by ETH?

If ethereum fails to start another increase above the $1,275 resistance, it could continue to move down. An initial support on the downside is near the $1,250 level.

The next major support is near the $1,220 level. If there is a break below $1,220, the price could test the $1,165 support. Any more losses could lead the price towards the $1,100 support.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.

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

Major Support Level – $1,220

Major Resistance Level – $1,275

Featured image from iStock

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