Ethereum

Potential recovery hampered by downward pressure

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Ethereum price failed to break above the $3,520 area and started a fresh decline. ETH dipped below the $3,250 support and even tested the $3,150 area.

  • Ethereum started a fresh decline below the $3,320 and $3,250 levels.
  • The price is trading below $3,250 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $3,325 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct its losses, but gains could be limited above the $3,320 zone.

Ethereum Price Takes a Hit

Ethereum price failed to continue above the $3,450 and $3,420 resistance levels. ETH started a fresh decline below the $3,320 support zone as BitcoinThere was a move below the $3,250 and $3,220 support levels.

The price declined by 5% and even tested the $3,150 support. A low was formed at $3,156 and the price is now consolidating its losses. There was a move above the $3,200 resistance level. The price is now testing the 23.6% Fibonacci retracement level of the downward move from the $3,426 high to $3,156 low.

Ethereum trades below $3,300 and the 100-hour simple moving average. In case of a recovery wave, the price could face resistance near the $3,250 level. The first major resistance is near the $3,300 level or the 50% Fibonacci retracement level of the downward move from the $3,426 high to $3,156 low.

Source: ETHUSD on TradingView.com

There is also a key bearish trend line forming with resistance near $3,325 on the hourly chart of ETH/USD. The next major hurdle lies near the $3,365 level. A close above the $3,365 level could send Ether towards the $3,450 resistance. The next key resistance lies near $3,500. An upside break above the $3,500 resistance could push the price higher. Any further gains could send Ether towards the $3,550 resistance area.

Another ETH decline?

If Ethereum fails to break the $3,320 resistance, it could continue lower. The initial support on the downside is near $3,200. The first major support is near the $3,150 area.

A clear move below the $3,150 support could push the price towards $3,080. Any further losses could push the price back towards the $3,050 level in the near term.

Technical indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,150

Major Resistance Level – $3,320

Source

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