Ethereum price faced rejection and dropped from the $3,650 zone. ETH retested the $3,320 support and might start another increase.
- Ethereum started another decline and traded below the $3,500 support zone.
- The price is trading below $3,500 and the 100-hourly Simple Moving Average.
- There is a key bearish trend line forming with resistance near $3,420 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum if it settles above the $3,450 resistance zone.
Ethereum Price Dips Again
Ethereum price struggled to continue higher above the $3,650 resistance. ETH faced rejection and started a fresh decline below the $3,550 level, like Bitcoin.
There was a sharp move below the $3,500 and $3,450 levels. Finally, it retested the $3,320 support zone. A low was formed at $3,324 and the price is now attempting a recovery wave. There was a move above the $3,360 level. Ethereum is now trading below $3,500 and the 100-hourly Simple Moving Average.
On the upside, immediate resistance is near the $3,400 level. It is near the 23.6% Fib retracement level of the downward move from the $3,654 swing high to the $3,324 low.
The first major resistance is near the $3,420 level and the trend line. The next key resistance sits at $3,450, above which the price might test the 50% Fib retracement level of the downward move from the $3,654 swing high to the $3,324 low.
The next key resistance is seen near the $3,520 level and the 100-hourly Simple Moving Average, above which Ether could gain bullish momentum. In the stated case, the price could rise toward the $3,650 barrier.
Source: ETHUSD on TradingView.com
If there is a move above the $3,650 resistance, Ethereum could even climb toward the $3,720 resistance. Any more gains might call for a test of $3,880.
More Losses In ETH?
If Ethereum fails to clear the $3,420 resistance, it could continue to move down. Initial support on the downside is near the $3,320 level.
The first major support is near the $3,250 zone. The next key support could be the $3,220 zone. A clear move below the $3,220 support might send the price toward $3,120. Any more losses might send the price toward the $3,040 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,320
Major Resistance Level – $3,420
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Author: Aayush Jindal
