Ethereum started a sharp decline from the $3,530 region against the US Dollar. ETH price dropped to $3260 and is currently correcting higher.
- Ethereum started a significant decline from the $3,530 resistance area.
- The price is now trading below $3,400 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $3,460 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may face significant resistance near the $3,425 and $3,450 levels.
Ethereum price plunges 5%
Ethereum struggled to gain a higher pace than The $3,525 and $3,530 resistance levels. ETH topped out near the $3,525 level and started a significant decline.
The price declined below the $3,450 and $3,420 support levels. There was also a move below the $3,400 level and 100-hour simple moving average. Finally, there was a sharp drop below the $3,300 level. It traded as low as $3,261 and is currently correcting losses.
There was a recovery wave above the $3,300 level. It broke the 23.6% Fib retracement level of the recent decline from the $3,580 swing high to $3,261 low.
The price is now facing resistance near the $3,400 level. The next major resistance is near the $3,420 level. It coincides with the 50% Fib retracement level of the recent decline from the $3,580 swing high to $3,261 low. There is also a major bearish trend line forming with resistance near $3,460 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
If the ether price clears the $3,450 resistance area, it may start a decent increase. In the mentioned case, the price could rise above the $3,500 area. The next major barrier is near the $3,525 level, where the bears may take a stand.
More losses in ETH?
If Ethereum fails to start a new increase above the $3,420 level, it may start a new decline. There is initial support on the downside near the $3,300 region.
The next major support is near the $3,250 level. If there is a downside break below the $3,250 support level, the price may accelerate lower. In the mentioned case, there is a risk of a move towards the $3,050 level.
MACD per hour – ETH/USD’s MACD is slowly losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Key Support Level – $3250
Key Resistance Level – $3,420