Ethereum price failed to stay above $3,550. ETH is paring gains and could decline further if it breaks below the $3,350 support.
- Ethereum began a new decline after failing to stay above $3,550.
- The price is trading below $3,500 and the 100 hourly simple moving average.
- There is a key downtrend line forming with resistance at $3,550 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to fall if it stabilizes below the $3,350 zone.
Ethereum price drops further
Ethereum price failed to continue rising above $3,650 and began a new decline, like Bitcoin. ETH price fell below $3,550 and entered a short-term bearish zone.
The decline picked up pace below $3,500 and the price fell below the 50% Fib retracement level of the upward move from the $3,176 low to the $3,658 high. Ethereum price is now trading below $3,550 and the 100 hourly simple moving average.
If another wave of recovery occurs, the price may face resistance near the $3,475 level. The next key resistance is near the $3,500 level. The first major resistance is near the $3,550 level. There is also a key downtrend line forming with resistance at $3,550 on the hourly chart of ETH/USD.
A clear move above the $3,550 resistance could send the price towards the $3,650 resistance. An upside break above the $3,650 region could prompt further gains in the coming days. In the case in point, Ether could rise towards the $3,800 or even $3,880 resistance zone in the near term.
More losses in ETH?
If Ethereum fails to clear the $3,500 resistance, it could begin a new decline. Initial support on the downside is near the $3,400 level. The first major support is located near the $3,360 zone and the 61.8% Fibonacci retracement level of the upward move from the $3,176 low to the $3,658 high.
A clear move below the $3,360 support could push the price towards the $3,280 support. Any further losses could push the price towards the $3,240 region in the near term. The next key support lies at $3,220 and $3,200.
Technical indicators
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 zone.
Major support level: $3,360
Major resistance level – $3,550