Ethereum
Market sentiment is slowly moving lower
Ethereum price struggled to move above the $3,650 resistance and pared its gains. ETH is now signaling a downside breakout and could fall below $3,450.
- Ethereum pares gains from the $3,620 resistance zone.
- The price is trading below $3,550 and the 100 hourly simple moving average.
- There was a break below a short-term ascending channel forming with support at $3,540 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could gain bearish momentum if it drops below the $3,485 and $3,450 support levels.
Ethereum Prices Cut Gains
Ethereum price started a decent increase above the $3,500 area. ETH outperformed Bitcoin and broke the resistance at $3,550. However, the price struggled to surpass the $3,620 level and failed to test $3,650.
A high was reached at $3,620 and the price is now paring its gains. There was a slight decline below the $3,550 level. The price fell below the 23.6% Fibonacci retracement level of the upward move from the $3,351 low to $3,620 high.
There was a break below a short-term ascending channel forming with support at $3,540 on the ETH/USD hourly chart. Ethereum is still trading below $3,550 and the 100 hourly simple moving average.
The bulls are now active near the $3,485 support zone and the 50% Fibonacci retracement level of the upward move from the $3,351 low to $3,620 high. On the upside, the price may encounter resistance near the $3,520 level. The first major resistance is near the $3,560 level.
The main resistance lies at $3,620 or $3,650. An upside break above the $3,650 resistance could send the price higher. The next key resistance lies at $3,720, above which the price could gain ground and reach the $3,750 level. Any further gains could send Ether towards the $3,880 resistance zone in the coming days.
More disadvantages in ETH?
If Ethereum fails to clear the $3,560 resistance, it could begin a further decline. Initial downside support is near $3,485. The first major support is $3,450.
A sharp move below the $3,450 support could push the price towards $3,420. Any further losses could push the price towards the $3,350 level in the near term.
Technical indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $3,450
Major Resistance Level – $3,560