Ethereum collapsed below the $2,800 support zone. ETH is falling and it could trade below the $2,675 support zone, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Continued to Fall
Ethereum failed to continue above the $2,950 resistance and started a fresh decline below the key $2,880 support area. There was a clear move below the 50% Fib retracement level of the key increase from the $2,560 low to $3,043 high. ETH even settled below the $2,800 support zone and the 100 hourly simple moving average.
It is now trading below the 61.8% Fib retracement level of the key increase from the $2,560 low to $3,043 high. There is also a key bearish trend line forming with resistance near $2,800 on the hourly chart of ETH/USD.
Initial resistance is near the $2,760 level. The first major resistance is seen near the $2,800 level and the trendline zone. A clear move above the $2,800 level could open the doors for a decent increase. The next major resistance could be near the $2,850 level and the 100 hourly simple moving average. Any further upside could lead ETH towards the $3,000 resistance zone or even the $3,040 level.
Will It Drop More?
Jindal says that if Ethereum fails to start a fresh rise above the $2,800 level, it may continue to decline. According to him, an initial support is near the $2,700 level. The next major support is near the $2,675 level, where the price could gain bearish momentum. In the stated case, it could revisit the $2,550 support zone. Any more losses could result in a move towards the $2,500 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 currently below the 30 level.
- Major Support Level – $2,675
- Major Resistance Level – $2,800
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