Ethereum dips below the $3,000 support once again. ETH price tested the $2,850 support and it could dip below it, according to technical analysis by NewsBTC’s Aayush Jindal.
Dropped Hard Towards Main Support
Ethereum failed to stay above the $3,000 support zone and started a sharp decline. ETH remained below $3,000 and it broke the $2,950 support zone. The decline gained momentum below the $2,900 level and the 100 hourly simple moving average. There was also a break below a key bullish trend line with support near $3,065 on the hourly chart of ETH/USD. The pair declined below the $2,880 level and tested the main $2,850 support level.
formed a bottom near $2,850 and it is now consolidating losses. An immediate resistance is near the $2,920 level. The first major resistance is near the $2,930 level. This is near the 23.6% Fib retracement level of the recent decline from the $3,196 high to $2,850 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 decline from the $3,196 low to $2,850 low is also near the $3,020 resistance area.
A successful close above $3,020 could start a decent uptrend. In the indicated case, the price could rise to $3,200.
Will Ethereum Drop More?
Jindal says that if Ethereum fails to start a recovery wave above the $2,965 level, it may continue to move lower. An initial support on the downside is near the $2,880 level.
The next major support is near the $2,850 level. A downside break below $2,850 could trigger another major decline. The next major support is near the $2,800 level. Any more losses could result in a move towards $2,720.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is currently below the 40 level.
- Major Support Level – $2,850
- Major Resistance Level – $2,965
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