Ethereum extended the decline below the $3,000 support against the US Dollar. ETH price tested the $2,850 support, below which it could plummet.
Ethereum started a sharp decline below the $3,000 support level. The price is now trading below $2,950 and the 100 hourly simple moving average. There was a break below a key uptrend line with support near $3,065 on the hourly chart of ETH/USD (data feed via Kraken). The pair could extend losses if it fails to sustain above the $2,850 support.
Ethereum price dips into major support
Ethereum failed to hold above the $3,000 support zone and the decline extended. ETH remained below $3,000 and broke the $2,950 support zone. The drop gained pace below the $2,900 level and the 100 hourly simple moving average.
More importantly, there was a break below a key uptrend line with support near $3,065 on the hourly chart of ETH/USD. The pair broke down below the $2880 level and tested the main support level at $2850.
A low is formed near $2,850 and the price is now consolidating losses. An immediate resistance on the upside is near the $2920 level. The first major resistance is near the $2,930 level. It is close to the 23.6% Fibonacci retracement level of the recent drop from the $3196 low to $2850 low.
The next major resistance is near the $2,965 level. A clear move above $2,965 could send the price to $3,000. The 50% Fib retracement level of the recent drop from the $3,196 low to $2,850 low is also close to the $3,020 resistance zone.
Source: ETHUSD on TradingView.com
A successful close above $3,020 could start a steady rise. In this case, the price could rise to $3,200.
More losses in ETH?
If ethereum fails to start a recovery wave above the $2,965 level, it could continue to slide lower. An initial support on the downside is near the $2,880 level.
The next big support is near the $2,850 level. A downside break below $2,850 could spark another major drop. The next big support is near the $2,800 level. More losses could require a move towards $2,720.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 40 level.
Major Support Level: $2,850
Major resistance level: $2,965
This post Ethereum falls to key support, why ETH is still at risk
was published first on https://www.newsbtc.com/analysis/eth/ethereum-drops-to-2850/