Ethereum price extended its decline below $3,500. ETH is showing some bearish signs and there could be a drop towards 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 downtrend line forming with resistance at $3,520 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may resume its decline if it remains below the $3,520 and $3,550 resistance levels.
Support for Ethereum price breaks
Ethereum price started a downside correction below the $3,720 and $3,650 levels as Bitcoin. ETH fell below the $3,550 support level to move further into 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 some bearish signs below the 23.6% Fibonacci retracement level of the downward move from the $3,675 high to $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 ETH/USD chart.
The trend line is close to the 50% Fibonacci retracement level of the downward movement from the $3,675 swing high to $3,365 low. The next major resistance is near $3,600, above which the price could gain bullish momentum.
Source: ETHUSD on TradingView.com
In the stated case, Ether could rise towards the $3,650 level. If there is a move above the $3,650 resistance, Ethereum could even rise towards the $3,825 resistance. Any additional winnings may require a $4,000 test.
More downsides to ETH?
If Ethereum fails to overcome the $3,520 resistance, it could continue falling. Initial downside support is near the $3,365 level.
The first major support is near the $3,320 zone. The next important support could be the $3,250 zone. A clear move below the $3,250 support could send the price towards $3,200. Further losses could send the price towards the $3,150 level.
Technical Indicators
MACD per hour – The MACD for ETH/USD is gaining momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $3,365
Main resistance level – $3,520
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