Ethereum started another decline from the $3,030 resistance and traded below $2,800. ETH is currently scrambling for an upside correction. According to technical analysis by Aayush Jindal of NewsBTC:
Ethereum Starts Fresh Fall
Ethereum failed to gain momentum for a move above the $3,030 resistance. ETH formed a top and started a major decline below the $2,950 support. There was a sharp move below the $2,900 level and the 100 hourly simple moving average. ETH even declined below the $2,800 support zone. It formed a new weekly low near $2,766 and is now consolidating losses. It recovered above the $2,800 level. There was a break above the 23.6% Fib retracement level of the low from the $3,041 low to $2,766 low.
An initial resistance is seen near the $2,860 level. The next major resistance is near the $2,900 level. There is also a key bearish trend line forming with resistance near $2,910 on the hourly chart of ETH/USD. The trend line is near the 50% Fib retracement level of the decline from the $3,041 low to $2,766 low.
$2,910 Significant
A clear move above the $2,910 resistance could start another uptrend. The next major resistance could be $2,950. Any further gains could lead the price towards the $3,030 resistance.
Will Ethereum Drop More?
Jindal says that if Ethereum fails to gain momentum above the $2,900 level, it may continue to decline. An initial support on the downside is near the $2,800 area. The first major support is near the $2,765 level. If there is a downside break below the $2,765 support, the price could start another decline. The next key support is near the $2,650 area, below which there is a risk of a move towards $2,500.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is well below the 50 level.
- Major Support – $2,765
- Major Resistance – $2,910
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