Ethereum failed to exceed $3,050 and continued to decline. According to technical analysis by NewsBTC’s Aayush Jindal, it could test the $2,800 support zone in the near term.
Ethereum Continued to Decline
Ethereum managed to surpass the $3,000 resistance level. However, it failed to gain momentum above the $3,040 level. A high was formed near $3,042 and it started a downside correction from there. There was a move below the $3,000 and $2,950 levels. Besides, there was a break below a key bullish trend line with support near $2,960 on the hourly chart of ETH/USD. The pair is trading below the 23.6% Fib retracement level of the recent wave from the $2,560 low to $3,042 high. It is now trading above $2,880 and the 100 hourly simple moving average.
Initial resistance is near the $2,930 level. The first major resistance is seen near the $2,950 and $2,960 levels. The main resistance is still near the $3,000 and $3,050 levels. A clear move above the $3,050 level could open the doors for a decent increase. In the stated case, it could rally towards the $3,120 or even $3,200 level.
Will It Drop More?
Jindal says that if Ethereum fails to start a fresh increase above the $2,950 level, it may continue to decline. An initial support on the downside is near the $2,880 level and the 100 hourly simple moving average.
The next major support is near the $2,840 level, below which the price could decline to the $2,800 support. This is close to the 50% Fib retracement level of the recent wave from the $2,560 low to $3,042 low. Any more losses could result in a move towards the $2,750 level in the near term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is now below the 50 level.
- Major Support Level – $2,880
- Major Resistance Level – $3,000
47036
