Ethereum gained bearish momentum below the $3,100 level against the US Dollar. ETH price extended lower and settled below the $3,000 support area.
- Ethereum started another downside and traded below the key $3,000 support level.
- The price is now trading below $3,050 and the 100 hourly simple moving average.
- There is a solid bearish trend line forming with resistance near $2,990 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could recover, but the rally could be capped near the $3,035 level.
Ethereum price extends decline
Ethereum remains in descending zone Below $3,120. ETH broke the key $3,000 support area to move further into a bearish territory.
The bears even pushed the price below $2,980. The bottom formed near $2,951 and the price is now consolidating losses. Besides, the price of ether is now trading at less than $3,050 and 100-hour simple moving average. On the upside, we see initial resistance near the $2,990 level.
There is also a connecting bearish trend line forming with resistance near $2,990 on the hourly chart of ETH/USD. The next major resistance is near the $3,035 level. It is near the 23.6% Fib retracement level of the recent decline from the $3,308 swing high to $2,951.
A close above $3,035 might start a good recovery wave. The next major resistance might be near the $3,130 level. The 50% Fib retracement level of the recent decline from the $3,308 swing high to $2,951 is also near $3,130.
Source: ETHUSD on TradingView.com
A clear move above the $3,130 resistance could increase the chances of a trend change. In the mentioned case, the price could rise above the $3,150 area.
More losses in ETH?
If Ethereum fails to initiate a recovery wave above $3,035, it may continue to decline. There is initial support on the downside near the $2,965 region.
The next major support is near the $2,950 level. If there is a downside break below the $2950 support, the price may resume its decline. In the mentioned case, the price may drop towards the $2,820 level or even $2,800 in the near term.
MACD per hour – ETH/USD’s MACD is slowly losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now correcting higher towards the 40 level.
Main Support Level – $2950
Key Resistance Level – $3,035