Ethereum price failed to clear the USD 3,720 resistance. ETH fell again and is now at risk of more losses below the USD 3,550 support zone.
- Ethereum started a new decline from the USD 3,720 resistance zone.
- The price is trading below $3,650 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $3,680 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend losses if it closes below the $3,550 support.
Ethereum price drops again
Ethereum price attempted to make a decent rise above the USD 3,650 resistance zone. ETH even spiked above $3,700, but the bears were active. A high was reached at $3,710 and the price started falling again. There was a sharp decline below the USD 3,660 and USD 3,650 levels.
A low was formed near $3,565 and the price is now consolidating losses just like Bitcoin. Ethereum is now trading below $3,650 and the 100-hourly Simple Moving Average.
If there is a new surge or recovery wave, the price may encounter resistance near the 23.6% Fib retracement level of the downward move from the $3,710 swing high to the $3,565 low. The first major resistance is around the $3,640 level.
There is also a major bearish trendline forming with resistance around $3,680 on the hourly chart of ETH/USD. The trendline is close to the 61.8% Fib retracement level of the downward move from the $3,710 swing high to the $3,565 low.
An upside break above the USD 3,680 resistance could send the price higher. The next major resistance is at USD 3,720, above which the price could gain strength and rise towards the USD 3,750 level. If the bulls push Ether above the USD 3,750 level, the price could rise and test the USD 3,800 resistance. Even more gains could send Ether towards the USD 3,880 resistance zone.
Lose more in ETH?
If Ethereum fails to clear the USD 3,650 resistance, it could continue falling. The initial downside support is near USD 3,550. The next major support is near the $3,520 zone.
The main support is at $3,500. A clear move below the USD 3,500 support could push the price towards USD 3,320. Any further losses could send the price towards the USD 3,250 level in the near term.
Technical indicators
hourly MACD – The MACD for ETH/USD is gaining strength in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $3,550
Major resistance level – $3,650
