Ethereum price extended its decline below $3,500. ETH is showing a few bearish signs and there could be a drop toward the $3,200 support zone.
- Ethereum started a downside correction below the $3,550 zone.
- The price is trading below $3,550 and the 100-hourly Simple Moving Average.
- There is a major bearish trend line forming with resistance at $3,520 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its decline if it stays below the $3,520 and $3,550 resistance levels.
Ethereum Price Breaks Support
Ethereum price started a downside correction below the $3,720 and $3,650 levels, like Bitcoin. ETH declined below the $3,550 support level to move further in a short-term bearish zone.
Finally, the price traded below the $3,420 support. A low was formed at $3,365 and the price is now consolidating losses. It is showing a few bearish signs below the 23.6% Fib retracement level of the downward move from the $3,675 swing high to the $3,365 low.
Ethereum price is now trading below $3,550 and the 100-hourly Simple Moving Average. On the upside, immediate resistance is near the $3,440 level. The first major resistance is near the $3,520 level. There is also a major bearish trend line forming with resistance at $3,520 on the hourly chart of ETH/USD.
The trend line is close to the 50% Fib retracement level of the downward move from the $3,675 swing high to the $3,365 low. The next major resistance is near $3,600, above which the price might gain bullish momentum.
Source: ETHUSD on TradingView.com
In the stated case, Ether could rally toward the $3,650 level. If there is a move above the $3,650 resistance, Ethereum could even rise toward the $3,825 resistance. Any more gains might call for a test of $4,000.
More Downsides In ETH?
If Ethereum fails to clear the $3,520 resistance, it could continue to move down. Initial support on the downside is near the $3,365 level.
The first major support is near the $3,320 zone. The next key support could be the $3,250 zone. A clear move below the $3,250 support might send the price toward $3,200. Any more losses might send the price toward the $3,150 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,365
Major Resistance Level – $3,520
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Author: Aayush Jindal
