Ethereum Prints Bearish Technical Pattern, Why ETH Could Resume Downtrend


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.

Ethereum price

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 hourMACD for ETH/USD is now losing momentum in the bearish zone.

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

Main Support Level – $2,720

Key Resistance Level – $2,820



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