Ethereum started a fresh decline after facing rejection near $3,300. According to technical analysis by NewsBTC’s Aayush Jindal, it could extend the decline to $3,000 in the short term.
Ethereum Continues Downward
Ethereum attempted an upside correction above the $3,220 level. A high was formed near $3,307 and the price started a fresh decline. There was a clear move below the $3,250 and $3,220 support levels. ETH even traded below a connecting bullish trend line with support near $3,220 on the hourly chart.
It is now trading below $3,200 and the 100 hourly simple moving average. An initial resistance is seen near the $3,190 level. This is near the 23.6% Fib retracement level of the low from the $3,307 low to $3,154 low. The next major resistance is near the $3,235 level. The 50% Fib retracement level of the drop from the $3,307 low to $3,154 low is also near $3,235. The main resistance seems to be near the $3,260 level and the 100 hourly simple moving average. Besides, there is a major bearish trend line forming with resistance near $3,320 on the hourly chart of ETH/USD.
$3,260 Significant
A clear move above the $3,260 resistance followed by the trend line could start a decent increase. In the stated case, the price could climb above the $3,300 zone.
Will Ethereum Drop More?
Jindal says that if Ethereum fails to start a fresh increase above the $3,260 level, it may continue to move lower. An initial support on the downside is near the $3,150 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 resume its decline. In the stated case, the price could even drop to $3,000.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is now below the 50 level.
- Major Support – $3,150
- Major Resistance – $3,260
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