Ethereum started a sharp drop from the $3530 zone against the US Dollar. ETH price sank to $3,260 and is currently correcting higher.
Ethereum started a major decline from the $3,530 resistance zone. The price is now trading below $3,400 and the 100 hourly simple moving average. There is a major bearish trend line forming with resistance near $3,460 on the hourly chart of ETH/USD (data feed via Kraken). The pair could face a major resistance near the $3,425 and $3,450 levels.
Ethereum price drops 5%
Ethereum struggled to gain pace above the $3,525 and $3,530 resistance levels. ETH broke out near the $3,525 level and started a big drop.
The price fell below the $3450 and $3420 support levels. There was also a move below the $3,400 level and the 100 hourly simple moving average. Finally, there was a sharp drop below the $3,300 level. It traded as low as $3,261 and is currently correcting losses.
There was a wave of recovery above the $3,300 level. It broke the 23.6% Fibonacci retracement level of the recent drop from the $3,580 high to $3,261 low.
The price is now facing resistance near the $3,400 level. The next major resistance is near the $3,420 level. It coincides with the 50% Fib retracement level of the recent drop from the $3,580 high to $3,261 low. There is also a major bearish trend line forming with resistance near $3,460 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
If ether price breaks above the $3450 resistance zone, it could start a decent rally. In the indicated case, the price could rise above the $3,500 zone. The next key barrier is near the $3,525 level, where the bears could take a position.
More losses in ETH?
If ethereum fails to start a new rise above the $3,420 level, a new drop could start. An initial support on the downside is near the $3,300 zone.
The next big support is near the $3,250 level. If there is a downside break below the $3,250 support, the price could accelerate lower. In the indicated case, there is a risk of a move towards the $3,050 level.
technical indicators
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level: $3,250
Major resistance level: $3,420
This post Ethereum Turns Red Below $3.4K Why Upsides Might Be Limited
was published first on https://www.newsbtc.com/analysis/eth/ethereum-turns-red-below-3-4k/
