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Ethereum price started a new decline from the $3,550 resistance level. ETH is now showing bearish signs and may drop below the $3,300 level.
- Ethereum started a new decline from the $3,550 area.
- The price is trading below the $3,450 level and the 100 hourly simple moving average.
- There was a breakout below the connecting uptrend line with support at $3,450 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain downside momentum if it settles below the $3,300 level.
Ethereum price drops to support
Ethereum price struggled to continue rising above the $3,550 resistance level and started a new decline like Bitcoin. ETH traded below the $3,450 and $3,420 support levels.
There was a breakout below the connecting uptrend line with support at $3,450 on the hourly chart of ETH/USD. The pair also fell below the 50% Fibonacci retracement level of the upward wave from the swing low of $3,225 to the high of $3,543.
Ethereum price is now trading below the $3,450 level and the 100 hourly simple moving average. It is now testing the $3,300 support level which is above the 76.4% Fib retracement level of the upward wave from the $3,225 swing low to the $3,543 high.
On the upside, the price appears to be facing hurdles near the $3,380 level. The first major resistance is near the $3,420 level. The main resistance is now forming near $3,500. A clear move above the $3,500 resistance level could send the price towards the $3,550 resistance level.
A bullish break above the $3,550 resistance may require further gains in the coming sessions. In the mentioned case, Ether could rise towards the resistance area of $3,650 or even $3,720 in the near term.
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 $3,320 level. The first major support is near the $3,300 level.
A clear move below the $3,300 support level could push the price towards the $3,250 support level. Any further losses could send the price towards the $3,220 support level in the near term. The next major support is at $3,110.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Major support level – $3,300
Major resistance level – $3,420