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Crypto News: TA: Ethereum Gearing For Another Lift-Off to $3,500: Recovery Isn’t Over Yet

Ethereum started a downside correction from $3,400 against the US Dollar. ETH price is holding the $3,250 support and eyes a fresh increase above the $3,320 resistance.

Ethereum Price Corrects Lower

Ethereum started a strong increase above the $3,320 resistance zone. ETH even broke the $3,400 resistance zone and the 100 hourly simple moving average, but there was no momentum.

A high was formed near $3,412 and the price is now correcting gains. Ether price declined below the $3,320 support. There was a break below the 23.6% Fib retracement level of the key increase from the $2,931 swing low to $3,412 high.

Besides, there was a break below a major bullish trend line with support near $3,300 on the hourly chart of ETH/USD. It is now trading above $3,250 and the 100 hourly simple moving average.

Dips Limited in ETH?

If ethereum fails to start a fresh increase above the $3,320 level, it could continue to move down. An initial support on the downside is near the $3,250 level. The first key support is now forming near the $3,175 level.

It is near the 50% Fib retracement level of the key increase from the $2,931 swing low to $3,412 high. A downside break below the $3,175 level might push the price towards the $3,115 zone. Any more losses could lead the price towards $3,000.

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