Key Takeaways:
Ethereum failed to clear the $2,750 zone and corrected gains.
ETH/USD is still well below a key bearish trend line with resistance at $2,920 on the daily chart.
The price must stay above $2,300 to start a fresh upward move toward $2,800.
Ethereum (ETH) price is correcting gains below the $2,650 pivot level. However, a test of $2,800 is still possible in the near term.
Ethereum Price Sees Downside Correction
This past week, we saw a decent increase in Ethereum price above the $2,400 level. The price was able to surpass the $2,500 and $2,550 resistance levels. It even climbed above the $2,650 pivot level and the 50-day simple moving average (blue).
However, the bears were active near the $2,735 level. A high was formed at $2,732 and ETH started a downside correction like Bitcoin. There was a move below the $2,650 and $2,550 support levels.
Ethereum price daily chart | Source: ETH/USD on TradingView.com
Ethereum traded below the 50-day simple moving average (blue) and $2,500. However, the bulls are now active near a connecting bullish trend line at $2,440 on the daily chart.
The trend line is close to the 50% Fib retracement level of the upward move from the $2,156 swing low to the $2,732 high. If the bulls can protect the trend line support, the price could start another increase. On the upside, the price could face resistance near the $2,550 level.
The first major resistance sits near the $2,650 pivot level. The next resistance is near the $2,735 level. A clear move above the $2,735 level could open the doors for a move toward the $2,800 level or even $2,880. There is also a key bearish trend line forming with resistance at $2,920 on the daily chart.
If ETH bulls push the price above the $2,920 resistance, there could be a strong increase. In the stated case, the price could rise toward the $3,250 level. Any more gains might initiate a move toward the $3,500 zone.
More Downsides In ETH?
Conversely, Ethereum might struggle to rise above the $2,550 resistance or $2,650. Immediate support is near the $2,440 level and the trend line.
The first major support sits near the $2,300 level and the 76.4% Fib retracement level of the upward move from the $2,156 swing low to the $2,732 high. A daily close below the $2,300 level might send ETH toward the $2,155 support. A clear downside break below the $2,155 support zone could spark a larger decline. The next major support is near the $1,880 level.
Overall, Ethereum price is correcting gains and trading below $2,650. The current price action suggests that the price could rise again toward $2,800 unless it trades below $2,300.
The post Ethereum (ETH) Slips, Yet a $2,800 Rally Is Still Possible appeared first on CoinChapter.
