Ethereum price failed to recover above the USD 3,650 resistance. ETH again fell below the USD 3,550 level and is now showing bearish signs below USD 3,600.
- Ethereum started a new decline below the USD 3,550 support zone.
- The price is trading below $3,550 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $3,650 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend losses if it remains below the USD 3,650 resistance zone.
Ethereum price takes a hit
Ethereum price tried to make a recovery wave, but there was no bullish momentum. ETH failed to break above the USD 3,650 level and started falling again. There was a steady decline below the USD 3,600 level.
The price fell below the USD 3,550 support level. A low was formed near USD 3,430 and the price is now consolidating losses just like Bitcoin. Ethereum is now trading below $3,550 and the 100-hourly Simple Moving Average.
There was a small correction above the USD 3,480 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $3,710 swing high to the $3,430 low. If there are more gains, the price could face resistance near the $3,550 level.
The first major resistance is around the $3,570 level. It is close to the 50% Fib retracement level of the downward move from the $3,710 swing high to the $3,430 low.
There is also a major bearish trendline forming with resistance around $3,650 on the hourly chart of ETH/USD. An upside break above the USD 3,650 resistance could push the price higher. The next major resistance is at USD 3,720, above which the price could gain strength and rise towards the USD 3,820 level.
A clear move above the USD 3,820 level could require a test of the USD 3,920 resistance. Even more gains could send Ether towards the $4,000 resistance zone.
Another drop in ETH?
If Ethereum fails to clear the USD 3,550 resistance, it could continue to decline. The initial downside support is near $3,475. The next major support is near the $3,430 zone.
A clear move below the USD 3,430 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 losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $3,430
Major resistance level – $3,550
