Ethereum started a sharp decline at $3,180. According to technical analysis by NewsBTC’s Aayush Jindal, ETH bulls must protect the $2,950 support to avoid a trend change in the near term.
Ethereum Drops
Ethereum attempted a clear move above the $3,150 resistance area but failed to gain strength above the $3,150 level and formed a short-term top near $3,180. A top was formed at $3,179 and the price started a sharp decline. There was a clear move below the $3,100 support zone and the 100 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near $3,100 on the hourly chart of ETH/USD.
ETH broke below the 50% Fib retracement level of the $2,880 high to $3,179 high and even tested the $2,950 support zone. The bulls seem to be holding the 76.4% Fib retracement level of the upward move from the $2,880 low to $3,179 high. An initial resistance is seen near the $3,020 level. The next major resistance is near the $3,030 level.
$3,060 Crucial
The main resistance is now near $3,060 and the 100 hourly simple moving average. A close above the $3,060 level could start a fresh increase in the near term. In the stated case, it could climb to the $3,150 level.
Will Ethereum Drop More?
Jindal says that if Ethereum fails to gain momentum above the $3,030, it may continue to decline. An initial support on the downside is near the $2,970 area. The first major support is near the $2,950 level. If there is a downside break below the $2,950 support, the price could decline further. The next key support is near the $2,880 zone.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is now below the 50 level.
- Major Support – $2,950
- Major Resistance – $3,060
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