Ethereum Price Takes a Plunge: Can Bulls Step In?
Ethereum price extended losses and fell below the $3,680 area. ETH is down over 7% and showing bearish signs below $3,550.
- Ethereum started a fresh decline in the sub-$3,680 area.
- The price is trading below $3,550 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance at $3,650 on the hourly chart of ETH/USD (data feed via Kraken).
- If it fails to hold above the $3,650 support area, the pair is likely to continue falling.
Ethereum price falls below $3,650
Ethereum price struggled to start a fresh rally above $3,680 and extended losses, e.g. Bitcoin. ETH gained bearish momentum below $3,650 and headed below $3,600.
It even fell below $3,550 and surged below $3,420. A low was formed at $3,324 and the price is now consolidating losses. There is also a key bearish trend line forming with resistance at $3,650 on the hourly chart of ETH/USD.
Ethereum price is currently trading below $3,550, 100 hour simple moving average. On the bright side, the price seems to be facing a hurdle near the $3,510 level. It is close to the 23.6% Fib retracement level of the downward move from the swing high of $4,105 to low of $3,324.
The first major resistance level is near $3,650. There is also a key bearish trend line forming with resistance at $3,650 on the hourly chart of ETH/USD.
Major resistance is currently forming near $3,715, the 50% Fibonacci retracement level of the downward move from the $4,105 swing high to $3,324 low. A clear break above the $3,715 resistance may push the price towards the $3,800 resistance. An upside break above the $3,800 resistance could bring more gains in the coming sessions. In the above scenario, Ethereum could rise towards the $3,880 resistance zone or even $4,000.
ETH loses more?
If Ethereum fails to break above the $3,650 resistance, it may continue to fall. Initial support on the downside is near $3,350. The first major support is located near the $3,320 area.
A clear break below the $3,320 support could push the price towards the $3,250 support. Any further losses may push the price towards the $3,150 support in the near term. The next key support is located at $3,050.
Technical indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
hourly relative strength index – The RSI for ETH/USD is currently below the 50 area.
Major Support – $3,320
Major Resistance – $3,650
