Ethereum failed to break the $3,200 resistance. According to technical analysis by NewsBTC’s Aayush Jindal, it could retest the $2,960 support zone in the near term.
Ethereum Main Support
Ethereum attempted an upside break above the $3,200 resistance zone but failed to gain momentum and started a decline. It traded below the $3,150 support. There was a move below the 23.6% Fib retracement level of the upward move from the $2,833 low to $3,196 high. The price even dropped below $3,120. However, it is still trading above $3,050 and the 100 hourly simple moving average.
An immediate upside resistance is near the $3,100 level. The first major resistance is near the $3,150 level. The main resistance is still near the $3,200 level. A successful close above $3,200 could start a decent uptrend. In the stated case, the price could rise to $3,250. Any further gains could send the price towards the $3,320 level.
Will Ethereum Drop?
Jindal says if Ethereum fails to start a fresh rise above $3,100 or $3,150, it may continue to decline. An initial support on the downside is near the $3,060 level, the 100 hourly simple moving average and the trend line. The next major support is near the $3,020 level. The 50% Fib retracement level of the rise from the $2,833 low to $3,196 high is also near the $3,020 area. If there is a downside break below the trendline support and then $3,020, it could start a major decline. The next major support is near the $2,960 level. Any more losses may require a move towards $2,880.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is now below the 50 level.
- Major Support Level – $3,050
- Major Resistance Level – $3,150
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