Ethereum started a sharp decline from $3,000 against the US Dollar. ETH is struggling below $2,900 and might slide below the $2,800 level in the near term.
- Ethereum started a major decline after there was a clear move below $3,000.
- The price is now trading above $2,900 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $2,935 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must stay above the $2,840 support to avoid more downsides in the near term.
Ethereum Price Dives
Ethereum attempted a clear move above the $3,000 resistance zone. However, ETH failed to gain strength above the $3,000 level and formed a short-term top near $2,980.
A high was formed at $2,967 and the price started a sharp decline. There was a clear move below the $2,950 support zone and the 100 hourly simple moving average. The bears were able to push the price below the $2,900 level.
A low was formed near $2,840 and the price is now consolidating losses. Ether is now trading above the 23.6% Fib retracement level of the recent decline from the $2,967 swing high to $2,840 low.
On the upside, an initial resistance is seen near the $2,900 level. It is near the 50% Fib retracement level of the recent decline from the $2,967 swing high to $2,840 low. The next major resistance is near the $2,930 level. There is also a key bearish trend line forming with resistance near $2,935 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
The main resistance now sits near $3,000 and the 100 hourly simple moving average. A close above the $3,000 level might start a fresh rise in the near term. In the stated case, ether might climb towards the $3,050 level.
More Downsides in ETH?
If ethereum fails to gain pace above the $2,930 level, it could continue to move down. An initial support on the downside is near the $2,850 zone.
The first major support is near the $2,840 level. If there is a downside break below the $2,840 support, the price could accelerate lower. The next key support is near the $2,750 zone.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $2,840
Major Resistance Level – $2,930
Author: Aayush Jindal
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