Ethereum price struggled to climb above the USD 3,650 resistance and pared gains. ETH is now signaling a downside break 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 rising channel that formed in the short term with support at $3,540 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bearish momentum if it falls below the USD 3,485 and USD 3,450 support levels.
Ethereum price cuts gains
Ethereum price started a decent rise above the $3,500 zone. ETH outperformed Bitcoin and broke the USD 3,550 resistance. However, the price struggled to surpass the USD 3,620 level and failed to test USD 3,650.
It reached a high at $3,620 and the price is now paring back gains. There was a small decline below the USD 3,550 level. The price fell below the 23.6% Fib retracement level of the upward move from the $3,351 swing low to the $3,620 high.
There was a break below a rising channel that formed in the short term with support at $3,540 on the hourly chart of ETH/USD. 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% Fib retracement level of the upward move from the $3,351 swing low to the $3,620 high. On the upside, the price could encounter resistance near the USD 3,520 level. The first major resistance is around the $3,560 level.
The main resistance is at $3,620 or $3,650. 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 3,750 level. Any further gains could send Ether towards the USD 3,880 resistance zone in the coming days.
More disadvantages of ETH?
If Ethereum fails to clear the USD 3,560 resistance, it could trigger another decline. The initial downside support is near $3,485. The first major support is at $3,450.
A clear move below the USD 3,450 support could push the price towards USD 3,420. Any further losses could send the price towards the USD 3,350 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 – $3,450
Major resistance level – $3,560
