Ethereum soared to $3,300 but failed to extend gains against the US dollar. ETH price is correcting gains and there is a risk of it moving below $3,030.
Ethereum started a downside correction after it broke above the $3,270 level. The price is now trading below $3,100 and the 100 hourly simple moving average. There was a break below a major uptrend line with support near $3,140 on the hourly chart of ETH/USD (data feed via Kraken). The pair needs to sustain above $3,030 and $3,020 to avoid a breakout to the downside in the near term.
Ethereum price still at risk
Ethereum extended the rise above the $3,200 level. ETH even broke above the $3,250 level and the 100 hourly simple moving average. However, the bulls failed to gain strength above $3,250.
A high was formed near $3,283 and the price started a new decline. There was a move below the $3,200 and $3,150 support levels. Furthermore, there was a break below a major uptrend line with support near $3,140 on the hourly chart of ETH/USD.
The pair traded below $3,100 and the 100 hourly simple moving average. It even spiked below the $3,030 support. A low is formed near $3,005 and the price is now consolidating losses.
An immediate resistance is near the $3,080 level. It is close to the 23.6% Fibonacci retracement level of the recent drop from the $3,283 high to $3,005 low. The first major resistance is near the $3,120 level and the 100 hourly SMA.
Source: ETHUSD on TradingView.com
The main resistance is near the $3,150 level. It coincides with the 50% Fibonacci retracement level of the recent drop from the $3,283 high to $3,005 low. A successful close above $3,150 could start another rally. In the given case, the price could break above the $3,220 and $3,250 levels.
More losses in ETH?
If Ethereum fails to initiate a new rise above $3,120 or $3,150, it could continue to decline. An initial support on the downside is near the $3,030 level.
The next big support is near the $3,000 level. A break below the $3,000 level could push the price towards the $2,950 level. The next major support is near the $2,800 level, below which there is a risk of a bigger drop.
technical indicators
Hourly MACD – The MACD for ETH/USD is losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is below the 50 level.
Major Support Level: $3,000
Major resistance level: $3,150
This post Ethereum faces rejection, why ETH could plummet below $3K
was published first on https://www.newsbtc.com/analysis/eth/ethereum-faces-rejection-3k-2/
