Ethereum broke the support level at $2820 to enter a bearish zone against the US Dollar. ETH remains at risk of further downside below the $2,740 level.
- Ethereum started a new decline after it failed to clear the $2,880 area.
- The price is now trading below $2,820 and the 100 hourly simple moving average.
- There was a break below a major ascending channel with support near $2,820 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must surpass the $2800 and $2,820 resistance levels to start a recovery wave.
Ethereum price resumes decline
Ethereum attempted a bullish breakout above Resistance $2900. However, ETH struggled to surpass the $2,880 level and started a new low.
There was a break below the $2,850 and $2,820 support levels. The price fell sharply below the 50% Fib retracement level of the upward move from the $2,718 swing low to $2,881 high. There was also a break below a major ascending channel with support near $2,820 on the hourly chart of ETH/USD.
Ether price is now trading at less than $2,820 and 100-hour simple moving average. It also tested the 76.4% Fib retracement level of the upward move from the $2,718 swing low to $2,881.
The price is now consolidating near the $2,790 level. On the upside, we see an initial resistance near the $2800 level and a connecting descending trend line on the same chart. The next major resistance is near the $2,820 level and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
A clear move above the $2,820 resistance might start a steady upward move. In the mentioned case, the price of Ether might rise towards the $2,880 resistance. Any further gains could open the door for a move above $2,920.
More losses in ETH?
If Ethereum fails to rise above the $2,820 resistance, it may continue to decline. There is initial support on the downside near the $2,750 region.
The next major support is near the $2,720 level. If there is a downside breakout below the $2,220 support level, the price may gain bearish momentum. In the mentioned case, there is a risk of a move towards the $2600 level.
Technical Indicators
MACD per hour – MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is below the 50 level.
Main Support Level – $2,720
Key Resistance Level – $2,820