The price of Ethereum began a new decline below $3,500. ETH is trying to recover from $3,050 but faces resistance near $3,500.
- Ethereum started another bearish wave after settling below $3,550.
- The price is trading below $3500 and the 100 hourly simple moving average.
- There was a break above a bearish trend line with resistance at $3,410 on the hourly chart of ETH/USD (data via Kraken).
- The pair could continue to decline if it trades below $3,320.
Ethereum price faces resistance
Ethereum price failed to stay in a positive zone and began a new decline below $3,500, like Bitcoin. ETH price fell below $3,450 and $3,350 to enter a bearish zone.
The decline accelerated below $3,250. Finally, the bulls appeared near $3,050. A low was formed at $3,058 and the price recently started a recovery wave. There was a move above the 23.6% Fibonacci retracement level of the downward move from the high of $3,920 to the low of $3,058.
Additionally, there was a break above a downtrend line with resistance at $3,410 on the hourly chart of ETH/USD. However, the bears remained active below $3,500 and the 50% Fibonacci retracement level of the downward move from the high of $3,920 to the low of $3,058.
Ethereum price is now trading below $3,400 and the 100 hourly simple moving average. If there is another recovery wave, the price could face resistance near the $3,450 level. The next key resistance is near the $3,480 level.
The first major resistance is near the $3,500 level. A clear move above the $3,500 resistance could send the price towards the $3,550 resistance. A bullish break above the $3,550 region could call for more gains in the coming days. In the indicated case, Ether could rise towards the resistance zone of $3,740 or even $3,800 in the short term.
Another drop in ETH?
If Ethereum fails to overcome the $3,480 resistance, it could start a new decline. Initial support on the downside is near the $3,320 level. The first major support lies near the $3,260 area.
A clear move below the $3,260 support could push the price towards the $3,150 support. Any further losses could send the price towards the $3,050 region in the near term. The next key support lies at $3,020 and $3,000.
Technical Indicators
MACD hourly – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Main Support Level: $3260
Main Resistance Level: $3,500
