Ethereum Price Falls 5%: Correction or Start of a Bigger Slide?
Ethereum price started a sharp decline, falling below the $3,880 area. ETH is down over 5% and showing bearish signs below $3,680.
- Ethereum started a fresh decline below the $3,800 area.
- The price is trading below $3,680 and the 100 hourly simple moving average.
- There is a new connecting bearish trend line forming with resistance at $3,800 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 falls below $3,800
Ethereum price struggled to stay above $3,880 and started a fresh decline, e.g. Bitcoin. ETH gained bearish momentum below $3,800 and headed below $3,680.
It even fell below $3,600 and surged below $3,550. A low was formed at $3,543 and the price is currently consolidating loss. There is also a new connecting bearish trend line forming with resistance at $3,800 on the hourly chart of ETH/USD.
Ethereum price is currently trading below $3,620 and the 100 hourly simple moving average. On the bright side, the price seems to be facing a hurdle near the $3,670 level. It is near the 23.6% Fib retracement level of the downward move from the swing high of $4,105 to low of $3,537.
The first major resistance level is near $3,800, the 50% Fibonacci retracement level of the downward move from the $4,107 swing high to $3,837 low.
Major resistance is now forming near $3,880. A clear break above the $3,880 resistance could push the price towards the $4,000 resistance. An upside break above the $4,000 resistance could bring more gains in the coming sessions. In the above scenario, Ethereum could rise towards the $4,150 resistance zone or even $4,220.
ETH loses more?
If Ethereum fails to break above the $3,680 resistance, it may continue to fall. Initial support on the downside is near $3,550. The first major support is located near the $3,500 area.
A clear break below the $3,500 support could push the price towards the $3,450 support. Any further losses may push the price towards the $3,350 support in the near term. The next key support level is $3,220.
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 – $3,550
Major Resistance – $3,680
