Ethereum Faces Key Challenge, Why Fresh Decline Still Possible


Ethereum started a recovery wave above the $2,840 level against the US Dollar. ETH is now facing a huge challenge near $2,905 and the 100-hour SMA.

  • Ethereum started a good recovery wave above the $2,840 and $2,850 levels.
  • The price is still below $2900 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $2900 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must breach the $2900 and $2,915 resistance levels to continue rising.

Ethereum price faces resistance

Ethereum Trade as low as $2,766 before the wave of recovery begins. ETH managed to stabilize above the $2,800 resistance area.

There was a move above the $2,840 and $2,850 resistance levels. Ether rose above the 23.6% Fib retracement level of the major decline from the $3,040 swing high to $2,766. Still less than $2900 and Simple moving average per 100 hours.

On the upside, we see initial resistance near the $2900 level. There is also a major bearish trend line forming with resistance near $2900 on the hourly chart of ETH/USD.

Besides, the 100 hourly simple moving average is acting as a barrier near $2900. The next major resistance is near the $2,905 level. It is close to the 50% Fib retracement level of the major decline from the $3,040 swing high to $2,766. A clear move above the $2900 resistance may start another increase.

Ethereum price

Source: ETHUSD on TradingView.com

The next major resistance on the upside might be $2,975. Any further gains could send the price towards the $3030 resistance level. Any further gains could send the price towards the $3,120 level.

A new drop in ETH?

If Ethereum fails to rise above the $2900 resistance, it may initiate a downside correction. There is initial support to the downside near the $2,860 region.

The first major support is near the $2,850 level. If there is a downside break below the $2,850 support, the price could revisit the key $2,800 support area. Any further losses could open the door to a bigger decline towards the $2,600 level or even $2,550.

Technical Indicators

MACD per hourETH/USD’s MACD is losing momentum in bullish territory.

Hourly RSIThe RSI for ETH/USD is just above the 50 level.

Key Support Level – $2,850

Key Resistance Level – $2900



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