Ethereum continued to decline below the $3,300 support zone. ETH price even traded below $3,200 and it could continue to decline, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Continues Lower
Ethereum started a massive decline below the $3,400 level and dropped as low as $3,143. ETH is currently trading above the $3,200 level.
An initial resistance is seen near the $3,240 level. This is close to the 23.6% Fib retracement level of the drop from the $3,548 low to $3,143 low. The next major resistance is near the $3,345 level. This coincides with the 50% Fib retracement level of the drop from the $3,548 high to $3,143 low. The main resistance is currently forming near the $3,400 level. There is also a key bearish trend line forming with resistance near $3,425 on the hourly chart of ETH/USD.
$3,400 Significant
ETH could start a decent increase if it surpasses the $3,400 resistance zone. In the indicated case, the price could climb above the $3,450 zone. The next key hurdle seems to be near the $3,500 level.
Will Ethereum Drop?
Jindal says that if Ethereum fails to start a fresh increase above the $3,400 level, it may continue its decline. An initial support on the downside is near the $3,140 area. The next major support is near the $3,120 level. If there is a downside break below the $3,120 support, the price could gain bearish momentum. In the stated case, there is a risk of a move towards the $3,000 level.
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 – $3,120
- Major Resistance – $3,400
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