Ethereum started a sharp decline from the $3,530 zone and settled as low as $3,260. ETH is currently correcting lower.
Ethereum Down 5%
Ethereum struggled to gain momentum above the $3,525 and $3,530 resistance levels but failed and started a major decline. The price settled below the $3,450 and $3,420 support levels. There was also a move below the $3,400 level and the 100 hourly simple moving average. There was also a sharp decline below the $3,300 level. It settled as low as $3,261 and it is currently correcting losses. There was a recovery wave above the $3,300 level. It surpassed the 23.6% Fib retracement level of the recent decline from the $3,580 low to $3,261 low.
ETH is currently facing resistance near the $3,400 level. The next major resistance is near the $3,420 level. This coincides with the 50% Fib retracement level of the drop from the $3,580 low 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.
$3.450 Level Significant
The analyst thinks that if ETH breaks through the $3,450 resistance zone, it could see a decent increase. In the stated case, the price could rise above the $3,500 zone. The next key hurdle is near the $3,525 level where the bears could take a position.
Will Ethereum Drop?
Jindal says that if Ethereum fails to start a fresh increase above the $3,420 level, it could start a fresh decline. An initial support on the downside is near the $3,300 zone. The next major support is near the $3,250 level. If there is a downside break below the $3,250 support, the price could decline further. In the stated case, there may be a risk of a move towards the $3,050 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is now below the 50 level.
- Major Support – $3,250
- Major Resistance – $3,420
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