Ethereum price faced rejection and fell from the $3,650 zone. ETH has retested the $3,320 support and may begin 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 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 stays above the $3,450 resistance zone.
Ethereum price drops again
Ethereum price struggled to continue above the $3,650 resistance. ETH faced rejection and started a new decline below the $3,550 level, as 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-hour Simple Moving Average.
On the upside, immediate resistance is near the $3,400 level. It is near the 23.6% Fibonacci retracement level of the downward movement from the $3,654 swing high to $3,324 low.
The first major resistance is near the $3,420 level and the trend line. The next key resistance lies at $3,450, above which the price could test the 50% Fibonacci retracement level of the downward move from the $3,654 swing high to $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 towards the $3,650 barrier.
Source: ETHUSD on TradingView.com
If there is a move above the $3,650 resistance, Ethereum could even rise towards the $3,720 resistance. Any additional winnings may require a test of $3,880.
More losses in ETH?
If Ethereum fails to overcome the $3,420 resistance, it could continue falling. Initial downside support is near the $3,320 level.
The first major support is near the $3,250 zone. The next important support could be the $3,220 zone. A clear move below the $3,220 support could send the price towards $3,120. Further losses could send the price towards the $3,040 level.
Technical Indicators
MACD per hour – The MACD for ETH/USD is losing strength in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $3,320
Main resistance level – $3,420
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