Ethereum started a fresh decline from the $3,080 resistance. It traded below the key $3,000 support and even settled below $2,920. According to technical analysis by Aayush Jindal of NewsBTC:
Ethereum Breaks Major Support
Ethereum attempted a fresh increase above the $3,050 level and the 100 hourly simple moving average. However, it failed to gain strength above the $3,080 level. A top was formed near $3,082 and the price started a fresh decline. There was a clear move below the $3,050 support level and the 100 hourly simple moving average. Besides, there was a break below a key ascending channel with support near $3,030 on the hourly chart of ETH/USD.
ETH traded below the $3,000 support zone. More importantly, there was a move below the $2,920 support. A bottom was formed near $2,896 and it is now consolidating losses.
Initial resistance is seen near the $2,940 level. This is near the 23.6% Fib retracement level of the low from the $3,082 low to $2,896 low. The next major resistance is near the $2,980 and $3,000 levels.
The 50% Fib retracement level of the drop from the $3,082 low to $2,896 low is also near the $2,990 level. A close above the $3,000 level and the 100 hourly simple moving average could start a decent recovery wave. The next major resistance could be near $3,050.
Will Ethereum Drop More?
Jindal says that if Ethereum fails to start a recovery wave above the $3,000 level, it may continue to move lower. An initial support on the downside is near the $2,900 zone. The next major support is near the $2,850 level. If there is a downside break below the $2,850 support, the price could start another decline. In this scenario, there is a risk of a move towards the $2,780 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 currently below the 30 level.
- Major Support Level – $2,900
- Major Resistance Level – $3,000
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