Another Test for Support Levels
Ethereum price failed to break above the $3,750 resistance and pared gains. ETH is back at $3,350 and may struggle to start a new upward move.
- Ethereum started a fresh decline from the $3,750 area.
- The price is trading below $3,550 and the 100 hourly simple moving average.
- There was a break above support connecting the bullish trend line at $3,675 on the hourly chart of ETH/USD (data via Kraken).
- The pair may struggle to start a fresh rise above the $3,450 resistance.
Ethereum price drops more than 8%
Ethereum price stabilizes above $3,650 and continues uptrend Bitcoin. ETH accelerated above the $3,680 and $3,700 resistance levels.
However, the bulls failed to push the price above the $3,750 resistance. The price formed a high at $3,742 before starting a fresh decline. There was a clear break below $3,650 and $3,550. There was also a break below the connecting bullish trend line with support at $3,675 on the hourly chart of ETH/USD.
A low was formed at $3,356, with the price currently consolidating below the 23.6% Fib retracement level of the recent swing high from $3,742 to $3,356 low.
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 $3,450 level. The first major resistance level is near $3,500. Major resistance is currently forming near $3,550, the 50% Fibonacci retracement level of the recent swing high from $3,742 to $3,356 low.
A clear break above the $3,550 resistance may push the price towards the $3,650 resistance. An upside break above the $3,650 resistance may bring more gains in the coming sessions. In the above scenario, Ethereum may rise towards the $3,750 resistance zone or even $3,880 in the short term.
ETH loses more?
If Ethereum fails to break the $3,450 resistance, it may start another decline. Initial support on the downside is near $3,350. The first major support is near $3,320.
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 $3,120.
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 – $3,350
Major Resistance – $3,450
