Ethereum Price Back In The Red: A Deeper Drop Ahead?
Ethereum price extended losses and fell below the $3,550 area. ETH is showing bearish signs and may fall further below the $3,150 level.
- Ethereum started a fresh decline in the sub-$3,550 area.
- The price is trading below $3,500 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance at $3,420 on the hourly chart of ETH/USD (data feed via Kraken).
- If it fails to hold above the $3,550 support area, the pair is likely to continue falling.
Ethereum Price Drops Below $3,550
Ethereum price struggled to start a fresh rally above $3,550 and extended losses, e.g. Bitcoin. ETH gained bearish momentum below $3,450 and was trading below $3,300.
It even fell below $3,220 and surged below $3,120. A low was formed at $3,100 and the price is currently consolidating loss. The close was below the 50% Fib retracement level of the recovery wave from the $3,100 swing low to $3,553 high.
Ethereum price is currently trading below $3,500 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance at $3,420 on the hourly chart of ETH/USD.
The pair is currently testing the 76.4% Fib retracement level of the recovery wave from the $3,100 swing low to $3,553 high. On the bright side, the price seems to be facing a hurdle near $3,350. The first major resistance level is near $3,400.
Major resistance is currently forming near $3,420. A clear break above the $3,420 resistance could push the price towards the $3,500 resistance. An upside break above the $3,500 resistance could bring more gains in the coming sessions. In the above scenario, Ethereum could rise towards the $3,550 resistance zone or even $3,650.
ETH loses more?
If Ethereum fails to break above the $3,420 resistance, it may continue to fall. Initial support on the downside is near $3,200. The first major support is located near the $3,120 area.
A clear break below the $3,120 support could push the price towards the $3,050 support. Any further losses could push the price towards the $3,000 support in the near term. The next key support is located at $2,880.
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 – $3,120
Major Resistance – $3,420
