Ethereum Price Drops Back: Another Test for Support Levels

NewsBTC
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Ethereum price failed to clear the $3,750 resistance and trimmed gains. ETH is back to $3,350 and might struggle to start a fresh increase.


  • Ethereum started a fresh decline from the $3,750 zone.

  • The price is trading below $3,550 and the 100-hourly Simple Moving Average.

  • There was a break below a connecting bullish trend line with support at $3,675 on the hourly chart of ETH/USD (data feed via Kraken).

  • The pair could struggle to start a fresh increase above the $3,450 resistance level.


Ethereum Price Dips Over 8%


Ethereum price remained stable above the $3,650 level and extended its upward move like Bitcoin. ETH gained pace for a move above the $3,680 and $3,700 resistance levels.


However, the bulls failed to push the price above the $3,750 resistance. A high was formed at $3,742 and the price started a fresh decline. There was a clear move below $3,650 and $3,550. There was also a break below a connecting bullish trend line with support at $3,675 on the hourly chart of ETH/USD.


A low was formed at $3,356 and the price is now consolidating below the 23.6% Fib retracement level of the recent decline from the $3,742 swing high to the $3,356 low.


Ethereum price is now trading below $3,550 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,450 level. The first major resistance is near the $3,500 level. The main resistance is now forming near $3,550 or the 50% Fib retracement level of the recent decline from the $3,742 swing high to the $3,356 low.


Ethereum Price


A clear move above the $3,550 resistance might send the price toward the $3,650 resistance. An upside break above the $3,650 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,750 resistance zone or even $3,880 in the near term.


More Losses In ETH?


If Ethereum fails to clear the $3,450 resistance, it could start another decline. Initial support on the downside is near the $3,350 level. The first major support sits near the $3,320.


A clear move below the $3,320 support might push the price toward the $3,250 support. Any more losses might send the price toward the $3,150 support level in the near term. The next key support sits at $3,120.


Technical Indicators


Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,350

Major Resistance Level – $3,450

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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