The Ethereum price started a new decline below $3,500. ETH is trying to recover from USD 3,050 but is facing resistance near USD 3,500.
- Ethereum entered another bearish wave after falling below $3,550.
- The price is trading below $3,500 and the 100-hourly Simple Moving Average.
- There was a break above a bearish trendline with resistance at $3,410 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to fall if it trades below $3,320.
Ethereum price faces resistance
The price of Ethereum did not remain in a positive zone and started a new decline below $3,500, just like Bitcoin. ETH price fell below USD 3,450 and USD 3,350 to enter a bearish zone.
The decline accelerated below $3,250. Finally, the bulls emerged around $3,050. A low was formed at $3,058 and the price recently started a recovery wave. There was a move above the 23.6% Fib retracement level of the downward move from the $3,920 swing high to the $3,058 low.
Additionally, there was a break above a bearish trendline with resistance at $3,410 on the hourly chart of ETH/USD. However, the bears remained active below $3,500 and the 50% Fib retracement level of the downward move from the $3,920 swing high to the $3,058 low.
The Ethereum price is now trading below $3,400 and the 100-hourly Simple Moving Average. If another recovery wave comes, the price may encounter resistance near the USD 3,450 level. The next major resistance is near the $3,480 level.
The first major resistance is around the $3,500 level. A clear move above the USD 3,500 resistance could send the price towards the USD 3,550 resistance. An upside break above the $3,550 region could call for more gains in the coming days. In the mentioned case, Ether could rise towards the USD 3,740 or even USD 3,800 resistance zone in the short term.
Another drop in ETH?
If Ethereum fails to clear the USD 3,480 resistance, it could trigger another decline. The initial downside support is near the $3,320 level. The first major support is near the $3,260 zone.
A clear move below the USD 3,260 support could push the price towards the USD 3,150 support. Any further losses could send the price towards $3,050 in the near term. The next major support is at USD 3,020 and USD 3,000.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 zone.
Major support level – $3,260
Major resistance level – $3,500