Ethereum is attempting an upside correction above $3,000 against the US Dollar. ETH price must clear $3,130 and the 100 hourly SMA to continue higher.

• Ethereum started an upside correction from the $2,950 zone.
• The price is still trading below $3,100 and the 100 hourly simple moving average.
• There was a break above a key bearish trend line with resistance near $3,035 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could recover, but upsides might be capped near the $3,130 level.

Ethereum Price Faces Hurdles

Ethereum formed a base above the $2,950 level and started a fresh increase. ETH broke the $3,000 resistance zone to move into a short-term positive zone.

There was a move above the $3,020 resistance level. Ether was able to clear the 23.6% Fib retracement level of the key drop from the $3,310 swing high to $2,951 low. Besides, there was a break above a key bearish trend line with resistance near $3,035 on the hourly chart of ETH/USD.

The price is now trading above the $3,050 level. On the upside, an initial resistance is seen near the $3,085 level. The next major resistance is near the $3,130 level and the 100 hourly simple moving average.

The 50% Fib retracement level of the key drop from the $3,310 swing high to $2,951 low is also near the $3,130 level. A close above the $3,130 level and the 100 hourly simple moving average might start a decent recovery wave.

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The next major resistance could be near the $3,170. A clear move above the $3,170 resistance could set the pace for a move above the $3,200 level. In the stated case, the price could climb above the $3,250 zone.

Fresh Decline in ETH?

If ethereum fails to start a recovery wave above the $3,130 level, it could start a fresh decline. An initial support on the downside is near the $3,020 zone. The next major support is near the $2,950 level. If there is a downside break below the $2,950 support, the price could start another decline. In this scenario, there is a risk of a move towards the $2,840 level. Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.

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

Major Support Level – $2,950 Major Resistance Level – $3,130