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Ethereum Price Back In The Red: A Deeper Drop Ahead?

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Ethereum price extended its losses and fell below the $3,550 area. ETH is showing bearish signs and may fall further below the $3,150 level.

  • Ethereum started a new decline below the $3,550 area.
  • The price is trading below the $3,500 level and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance at $3,420 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue moving down if it fails to stay above the $3,550 support area.

Ethereum price drops below $3,550

Ethereum price struggled to start a new surge above the $3,550 level and losses extended like Bitcoin. ETH gained bearish momentum below the $3,450 level and was trading below $3,300.

It even fell below $3,220 and rose below the $3,120 level. A bottom was formed at $3,100 and the price is now consolidating losses. There was a close below the 50% Fib retracement level of the recovery wave from the swing low at $3,100 to the swing high at $3,553.

Ethereum price is now trading below the $3,500 level and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance at $3,420 on the hourly chart of the ETH/USD pair.

The pair is now testing the 76.4% Fibonacci retracement level of the recovery wave from the low of $3,100 to the high of $3,553. On the upside, the price appears to be facing hurdles near the $3,350 level. The first major resistance is near the $3,400 level.

source: ETHUSD on TradingView.com

The main resistance is now forming near $3,420. A clear move above the $3,420 resistance could send the price towards the $3,500 resistance. A bullish break above the $3,500 resistance may require further gains in the coming sessions. In the mentioned case, the price of ether could rise towards the resistance area of ​​$3,550 or even $3,650.

More losses in ETH?

If Ethereum fails to break above the $3,420 resistance level, it may continue to move lower. Initial support on the downside is near the $3,200 level. The first major support is near the $3,120 area.

A clear move below the $3,120 support level could push the price towards the $3,050 support level. Any further losses may send the price towards the $3,000 support level in the near term. The next major support is at $2,880.

Technical indicators

MACD per hourThe MACD indicator for ETH/USD is gaining momentum in the bearish zone.

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

Major Support Level – $3,120

Major resistance level – $3,420

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