Ethereum price started a fresh decline below the $3,000 zone. ETH is down over 25% and the bears seem to be in control below $2,770.
- Ethereum started a fresh decline below the $3,000 support zone.
- The price is trading below $2,800 and the 100-hourly Simple Moving Average.
- There is a key bearish trend line forming with resistance at $2,900 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a recovery wave if it stays above the $2,200 level.
Ethereum Price Nosedives
Ethereum price started a major decline below the $3,000 level, underperforming Bitcoin. ETH declined below the $2,800 and $2,650 levels to enter a bearish zone.
There was a clear move below the $2,500 level. The price declined over 25% and tested the $2,120 zone. A low was formed at $2,127 and the price is now consolidating losses. There was a minor increase above the $2,300 level. The price surpassed the 23.6% Fib retracement level of the downward move from the $3,403 wing high to the $2,127 swing low.
Ethereum price is now trading below $2,800 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $2,650 level. The first major resistance is near the $2,770 level or the 50% Fib retracement level of the downward move from the $3,403 wing high to the $2,127 swing low.
The main resistance is now forming near $2,900. There is also a key bearish trend line forming with resistance at $2,900 on the hourly chart of ETH/USD. A clear move above the $2,900 resistance might send the price toward the $3,000 resistance.
An upside break above the $3,000 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,150 resistance zone or even $3,250 in the near term.
Another Drop In ETH?
If Ethereum fails to clear the $2,600 resistance, it could start another decline. Initial support on the downside is near the $2,320 level. The first major support sits near the $2,250.
A clear move below the $2,250 support might push the price toward the $2,120 support. Any more losses might send the price toward the $2,000 support level in the near term. The next key support sits at $1,880.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $2,200
Major Resistance Level – $2,600
