Ethereum price started a new decline below $3,750. ETH is moving down below $3,700 and could fall further if it trades below $3,550.
- Ethereum started another bearish wave after it failed to break above $3,880.
- The price is trading below $3700 and the 100 hourly simple moving average.
- A contraction triangle is forming with resistance at $3,650 on the hourly chart of ETH/USD (data via Kraken).
- The pair could continue to decline if it trades below $3,550.
Ethereum price falls further
Ethereum price failed to stay in a positive zone and started a new decline below $3,880, like Bitcoin. ETH price fell below $3,800 and $3,750 to enter a bearish zone.
The decline accelerated below $3,650. Finally, the bulls appeared near $3,550. A low was formed at $3,557 and the price is now consolidating losses near the 23.6% Fibonacci retracement level of the recent drop from the high of $3,920 to the low of $3,557.
Ethereum price is now trading below $3,800 and the 100 hourly simple moving average. If there is a recovery wave, the price could face resistance near the $3,650 level. There is also a contraction triangle forming with resistance at $3,650 on the hourly chart of ETH/USD.
The next key resistance is near the $3,740 level and the 50% Fibonacci retracement level of the recent decline from the high of $3,920 to the low of $3,557. The first major resistance is near the $3,800 level. A clear move above the $3,800 resistance could send the price towards the $3,880 resistance. A bullish break above the $3,880 region could call for more gains in the coming sessions. In the given case, Ether could rise towards the $4,000 or even $4,050 resistance zone in the near term.
More losses on ETH?
If Ethereum fails to overcome the $3,800 resistance, it could start a new decline. Initial support on the downside is near the $3,580 level. The first major support lies near the $3,550 area.
A clear move below the $3,550 support could push the price towards the $3,500 support. Any further losses could send the price towards the $3,420 region in the near term. The next key support lies at $3,350 and $3,320.
Technical Indicators
MACD hourly – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Main Support Level: $3,550
Main Resistance Level: $3,800
