Ethereum Topside Bias Vulnerable If ETH Dives Below $3,120


Ethereum extended its losses below the $3,300 support area against the US Dollar. ETH price is trading even below $3,200 and it may continue to decline.

  • Ethereum started a significant decline from the $3,450 resistance area.
  • The price is now trading below $3,200 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $3,425 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair remains at risk of further losses below the $3,140 and $3,120 levels.

Ethereum price extends to the downside

Ethereum formed a peak and started a file big drop Below the $3,400 level. ETH even traded below $3,340 to move further into a bearish territory.

The bears gained speed to move below the $3,300 level and the 100 hourly simple moving average. Ether rose below $3,200 and traded as low as $3,143. It is now consolidating above the $3,150 level. Less than $3200 is being traded and 100-hour simple moving average.

On the upside, we see initial resistance near the $3,240 level. It is close to the 23.6% Fib retracement level of the recent decline from the $3,548 swing high to $3,143 low.

The next major resistance is near the $3,345 level. It coincides with the 50% Fib retracement level of the recent decline from the $3,548 swing high to $3,143 low. The main resistance is now forming near the $3,400 level. There is also a major bearish trend line forming with resistance near $3,425 on the hourly chart of ETH/USD.

Ethereum price

Source: ETHUSD on TradingView.com

If the ether price clears the $3,400 resistance area, it may start a decent increase. In the mentioned case, the price could rise above the $3450 area. The next major barrier is near the $3,500 level.

More losses in ETH?

If Ethereum fails to start a new rally above $3,400, it may continue to decline. There is initial support on the downside near the $3.140 region.

The next major support is near the $3,120 level. If there is a downside breakout below the $3,120 support level, the price may gain bearish momentum. In the mentioned case, there is a risk of a move towards the $3000 level.

Technical Indicators

MACD per hourETH/USD’s MACD is now gaining momentum in bearish territory.

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

Key Support Level – $3,120

Key Resistance Level – $3,400



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