Ethereum recovered above $3,400 against the US Dollar. ETH is struggling and could start a new decline. According to technical analysis by NewsBTC’s Aayush Jindal:
- Ethereum retraced losses after a sharp drop to $2,900.
- The price is still trading well below $3,600 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $3,500 on the hourly chart of ETH/USD (data from Kraken).
- If there is no clear break above $3,600, the pair could start a fresh decline.
Ethereum (ETH) Meets Resistance
Ethereum declined heavily below $3,500 and $3,200. ETH even broke the $3,000 support and settled below the 100 hourly simple moving average, similar to Bitcoin. It dropped as low as $2,900 before starting an upside correction.
There was a break above the $3,300 and $3,400 resistance levels. The price even climbed above the $3,500 resistance zone. There was a break above a key bearish trend line with resistance near $3,500 on the hourly chart of ETH/USD.
However, the bears seem to be defending the $3,600 zone. A top is formed near $3,561 and the price is slowly declining. Ethereum is currently trading well below $3,600 and the 100 hourly simple moving average.
There was also a break below the 23.6% Fib retracement level of the high from the $3,218 low to $3,561 high. The price is now testing the same broken trendline at $3,440. An immediate resistance on the upside is near the $3,500 level.
The first major resistance is near the $3,560 level. A favorable move above the $3,560 level and $3,600 could increase the chances of a steady rise. The next major resistance is sitting near $3,680.
Will Ethereum (ETH) Drop More?
If Ethereum fails to continue higher above the $3,500 and $3,560 resistance levels, it could start another downside move. An immediate support on the downside is near the $3,400 level.
The next major support is now formed near the $3,380 zone. This is near the 50% Fib retracement level of the recent wave from the $3,218 high to $3,561 high. The main support is near $3,335, below which the price could test the $3,200 zone.
- Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now below the 50 level.
- Major Support Level – $3,380
- Main Resistance Level – $3,560
Risk Disclosure: The articles and articles on Arover.net do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies.