Ethereum price failed to break through the $3520 zone and started a new decline. ETH dropped below the $3250 support and even tested the $3150 zone.
- Ethereum began a new decline below the $3,320 and $3,250 levels.
- The price is trading below $3,250 and the 100-hour simple moving average.
- There is a key bearish trend line forming with resistance near $3,325 on the hourly chart of ETH/USD (data feed from Kraken).
- The pair may correct losses, but the potential for growth above the $3320 level may be limited.
Ethereum Price Falls
Ethereum price failed to continue its growth above the resistance levels of $3450 and $3420. ETH began another fall below the support zone of $3320, as did Bitcoin. There was a movement below the support levels of $3250 and $3220.
The price dropped by 5% and even tested the support at $3,150. The low was formed at $3,156 and now the price is consolidating losses. There was a move above the resistance level at $3,200. Now the price is testing the 23.6% Fibonacci retracement level of the downward move from the swing high at $3,426 to the low at $3,156.
Ethereum is trading below $3,300 and the 100-hour simple moving average. If there is a wave of recovery, the price may face resistance near the $3,250 level. The first major resistance is near the $3,300 level or the 50% Fibonacci retracement level of the downward move from the $3,426 swing high to the $3,156 low.
There is also a key bearish trendline forming with resistance near $3,325 on the hourly chart of ETH/USD. The next major hurdle is near $3,365. A close above $3,365 could send Ether towards the $3,450 resistance. The next key resistance is near $3,500. A break above the $3,500 resistance could send the price higher. Any further gains could send Ether towards the $3,550 resistance zone.
Another ETH Drop?
If Ethereum fails to break the $3,320 resistance, it may continue to move lower. Initial support on the downside is around $3,200. The first major support is around the $3,150 zone.
A clear move below the $3150 support could push the price towards $3080. Any further losses could send the price towards $3050 in the near future.
Technical indicators
Hourly MACD – MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 zone.
The main support level is $3150.
Main resistance level is $3320
