Ethereum started a new decline from the $3,080 resistance level against the US Dollar. ETH price traded below the key $3,000 support and even dropped below $2,920.
- Ethereum failed to liquidate $3,080 and started a new low.
- The price is now trading below $3000 and the 100 hourly simple moving average.
- There was a break below a major ascending channel with support near $3,030 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could recover, but the rally could culminate near the $2,950 level.
Ethereum price breaks key support
Try Ethereum new increase It is above the $3,050 level and the 100 hourly simple moving average. However, ETH failed to gain ground above the $3,080 level.
A rally formed near $3,082 and the price started a new decline. There was a clear move below the $3,050 support level and 100-hour simple moving average. Besides, there was a breakout below a major ascending channel with support near $3,030 on the hourly chart of ETH/USD.
The pair traded below the $3,000 support area. More importantly, there was a move below the $2,920 support level. The bottom formed near $2,896 and the ether is now consolidating losses.
On the upside, we see initial resistance near the $2,940 level. It is near the 23.6% Fib retracement level of the recent decline from the $3.082 high swing high to $2,896. The next major resistance is near the $2,980 and $3000 levels.
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the recent decline from the $3,082 swing high to $2,896 is also near the $2,990 level. A close above the $3000 level and the 100 hourly simple moving average may start a good recovery wave. The next major resistance might be near $3,050.
More losses in ETH?
If Ethereum fails to initiate a recovery wave above the $3000 level, it may continue to decline. There is an initial support to the downside near the $2900 region.
The next major support is near the $2,850 level. If there is a downside break below the $2,850 support, the price may start to decline again. In this scenario, there is a risk of a move towards the $2,780 level.
Technical Indicators
MACD per hour – The MACD for ETH/USD is now gaining momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now below the 30 level.
Key Support Level – $2900
Key Resistance Level – $3000