Ethereum started a sharp drop from $3,180 against the US Dollar. ETH bulls should protect the $2,950 support to avoid a trend change in the near term.
- Ethereum failed to gain strength above $3,150 and started a new low.
- The price is now trading above $3,030 and the 100 hourly simple moving average.
- There was a break below the major uptrend line with support near $3,100 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair should remain above the $2,950 support level to avoid further downside in the near term.
Ethereum price drop
Ethereum tried to clearly move above $3150 resistance area. However, ETH failed to gain strength above the $3,150 level and formed a short-term top near $3,180.
A high formed at $3,179 and the price started a sharp decline. There was a clear move below the $3,100 support area and 100-hour simple moving average. Besides, there was a break below the major uptrend line with support near $3,100 on the hourly chart of ETH/USD.
Ether price fell below the 50% Fib retracement level of the bullish wave from the $2,880 swing low to $3,179 high. The price even tested the $2,950 support area.
The bulls seem to be defending the 76.4% Fib retracement level of the upside wave from the $2,880 swing low to $3,179 high. On the upside, we see initial resistance near the $3,020 level. The next major resistance is near the $3,030 level.
Source: ETHUSD on TradingView.com
The main resistance is now near $3,060 and the 100 hourly simple moving average. A close above $3,060 may start a new high in the near term. In the aforementioned case, Ether could rise towards the $3,150 level.
More negatives in ETH?
If Ethereum fails to rise above the $3,030 level, it may continue to decline. There is initial support on the downside near the $2,970 region.
The first major support is near the $2,950 level. If there is a downside break below the $2950 support, the price may accelerate lower. The next major support is near the $2,880 area.
MACD per hour – ETH/USD’s MACD is losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Main Support Level – $2950
Key Resistance Level – $3,060