Ethereum started a sharp drop from $3,000 against the US dollar. ETH is struggling below $2900 and may drop below $2800 in the near term.
- Ethereum started to drop significantly after there was a clear move below $3,000.
- The price is now trading above $2900 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $2,935 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair should remain above the $2,840 support to avoid further downside in the near term.
Plunge into Ethereum Price
Ethereum tried to clearly move above $3,000 resistance area. However, ETH failed to gain strength above the $3,000 level and formed a short-term top near $2,980.
A high was formed at $2,967 and the price started a sharp decline. There was a clear move below the $2,950 support area 100-hour simple moving average. The bears managed to push the price below the $2900 level.
A bottom was formed near $2,840 and the price is now consolidating losses. Ether is now trading above the 23.6% Fib retracement level of the recent decline from the $2,967 swing high to $2,840.
On the upside, we see initial resistance near the $2900 level. It is close to the 50% Fib retracement level of the recent decline from the $2,967 high to $2,840. The next major resistance is near the $2,930 level. There is also a major bearish trend line forming with resistance near $2,935 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
The main resistance is now near $3000 and the 100 hourly simple moving average. A close above $3000 may start a new rally in the near term. In the mentioned case, Ether could rise towards the $3,050 level.
More negatives in ETH?
If Ethereum fails to rise above the $2,930 level, it may continue to decline. There is an initial support to the downside near the $2,850 region.
The first major support is near the $2,840 level. If there is a downside break below the $2,840 support, the price may accelerate lower. The next major support is near the $2750 area.
MACD per hour – ETH/USD’s MACD is now gaining momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Main Support Level – $2,840
Key Resistance Level – $2,930