Ethereum rose to $3,300 but failed to gain momentum. ETH is now correcting and there is a risk of a move below $3,030, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum at Risk
Ethereum rose to around $3,283 but failed to gain strength above it. Ethereum started a fresh decline from here and there was a move below the $3,200 and $3,150 support levels. Besides, there was a break below a major bullish trend line with support near $3,140 on the hourly chart of ETH/USD.
The pair settled below $3,100 and the 100 hourly simple moving average. It even declined below the $3,030 support and formed a low near $3,005. ETH is now consolidating losses.
The first major resistance is near the $3,120 level and the 100 hourly SMA. The main resistance is near the $3,150 level. This coincides with the 50% Fib retracement level of the drop from the $3,283 low to $3,005 low. A successful close above $3,150 could mark the start of another rise. In the stated case, ETH could surpass the $3,220 and $3,250 levels.
Will Ethereum Drop More?
Jindal says if Ethereum fails to start a fresh rise above $3,120 or $3,150, it may continue its decline. An initial support on the downside is near the $3,030 level. The next major support is near the $3,000 level. A downside break below the $3,000 level could push the price towards the $2,950 level. The next major support is near the $2,800 level, below which there is a risk of a larger decline.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is below the 50 level.
- Main Support Level – $3,000
- Main Resistance Level – $3,150
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