Ethereum Price Decline: Market Indicators Point to More Dips
Ethereum price struggled to clear the $3,650 resistance. ETH started another decline and there is now a risk of more dips below the $3,420 support.
- Ethereum started a fresh decline below the $3,550 support zone.
- The price is trading below $3,540 and the 100-hourly Simple Moving Average.
- There is a crucial bearish trend line forming with resistance near $3,550 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend losses if it stays below the $3,550 resistance zone.
Ethereum Price Struggle Continues
Ethereum price failed to start a recovery wave above the $3,550 and $3,580 resistance levels, like Bitcoin. ETH remained in a short-term bearish zone and extended losses below the $3,500 level.
The price declined below the $3,450 support level. A low was formed at $3,428 and the price is now consolidating losses. There was a minor increase above the 23.6% Fib retracement level of the recent decline from the $3,655 swing high to the $3,428 low.
Ethereum is still trading below $3,550 and the 100-hourly Simple Moving Average. There is also a crucial bearish trend line forming with resistance near $3,550 on the hourly chart of ETH/USD. If there is a fresh increase, the price might face resistance near the $3,540 level and the 50% Fib retracement level of the recent decline from the $3,655 swing high to the $3,428 low.
The first major resistance is near the $3,550 level and the trend line. An upside break above the $3,550 resistance might send the price higher. The next key resistance sits at $3,650, above which the price might gain traction and rise toward the $3,720 level.
A clear move above the $3,720 level might send Ether toward the $3,800 resistance. Any more gains could send Ether toward the $3,880 resistance zone.
More Downsides In ETH?
If Ethereum fails to clear the $3,550 resistance, it could continue to move down. Initial support on the downside is near $3,420.
A clear move below the $3,420 support might push the price toward $3,350. Any more losses might send the price toward the $3,250 level in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $3,420
Major Resistance Level – $3,550
