Ethereum Corrects Gains, Here’s Why 100 SMA Is The Key for Fresh Increase

Ethereum failed to continue above $2,900 against the US Dollar. ETH price corrected gains and it is now trading near a major support at $2,640 and the 100 hourly SMA.

Ethereum broke the $2,850 resistance, but it failed to gain pace above $2,900.
The price is now testing the $2,650 support and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support at $2,750 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above the 100 hourly SMA to avoid a drop towards the $2,380 support.

Ethereum Price Reaches Key Support
Ethereum extended its recovery wave above the $2,800 and $2,850 resistance levels. ETH even pushed above the $2,900 level and settled nicely above the 100 hourly simple moving average.
However, it failed to gain pace above $2,900. The bulls made two attempts to push the price above the $2,920 level, but they failed. The recent high was formed near $2,912 before the price started a downside correction.
Ether corrected lower below the $2,850 and $2,800 support levels. There was a break below a key bullish trend line with support at $2,750 on the hourly chart of ETH/USD. The pair even declined below the 23.6% Fib retracement level of the upward move from the $2,370 swing low to $2,912 high.
Ether price is now testing the $2,650 support and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the upward move from the $2,370 swing low to $2,912 high.

Source: ETHUSD on TradingView.com
On the upside, an immediate resistance is near the broken trend line at $2,800. The next major resistance is near the $2,900 level, above which the price could attempt a move towards the $3,000 resistance zone.
More Losses in ETH?
If Ethereum fails to continue higher above the $2,800 and $2,900 resistance levels, it could extend its decline. An initial support on the downside is near the $2,650 zone and the 100 hourly SMA.
A downside break below the 100 hourly SMA might spark a larger decline. The next key support is near the $2,380 level. Any more losses could lead the price towards the $2,185 support zone.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level.
Major Support Level – $2,650
Major Resistance Level – $2,800

Jimmy Steele

I’m known as one of the best Crypto Authors in the market. My work has been featured in numerous publications, including The Wall Street Journal, Forbes, and Barron’s. I’m a regular contributor to CoinDesk and have been a guest on CNBC, Fox Business, and Bloomberg TV.