Ethereum started a major decline below $3,500 against the US Dollar. ETH price tested $3,000 and is now attempting a strong recovery wave. According to technical analysis by NewsBTC’s Aayush Jindal:
- Ethereum started a major decline well above the $3,800 level.
- The price is now trading well below $3,600 and the 100 hourly simple moving average.
- There is a key contracting triangle forming with support near $3,400 on the hourly chart of ETH/USD (data from Kraken).
- The pair could trade in a range and face a strong resistance near $3,600.
Ethereum (ETH) Fixes Losses
Ethereum started a major decline after failing to surpass $4,000. ETH settled well below the $3,800 and $3,700 levels. It even broke the $3,600 support level and settled well below the 100 hourly simple moving average, similar to Bitcoin.
The bears even pushed the price below $3,500 and $3,200. Finally, it also saw below $3,000 and the price tested the $2,900 zone. A low was formed near $2,900 and Ethereum started a strong upward move recently.
It broke the $3,200 and $3,350 resistance levels. There was also a break above the 50% Fib retracement level of the decline from the $3,969 high to $2,900 high.
There is a key contracting triangle forming with support near $3,400 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $3,500 level.
The first major resistance is near the $3,560 level. This is near the 61.8% Fib retracement level of the downward move from the $3,969 low to $2,900 high. A favorable move above the $3,560 level and $3,600 could set the pace for a larger rise.
Will Ethereum (ETH) Drop More?
If Ethereum fails to continue higher above the $3,560 and $3,600 resistance levels, it could start another downside move.
Major support for Ethereum is now forming near the $3,320 zone. A downside break below the $3,320 support zone could push the price down further. In the stated case, the price is likely to drop to the $3,000 level in the near term.
- Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now rising towards the 50 level.
- Major Support Level – $3,320
- Main Resistance Level – $3,560