Ethereum price is struggling to clear the $3,650 resistance. ETH started another decline and now there is a risk of a further dip below the $3,420 support.
- Ethereum started a new low below the $3,550 support area.
- The price is trading below $3,540 and the 100-hour Simple Moving Average.
- There is an important bearish trend line forming resistance near $3,550 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair can extend losses if it stays below the $3,550 resistance area.
The Ethereum Price Struggle Continues
Ethereum price failed to start a wave of recovery above the resistance levels of $3,550 and $3,580, like Bitcoin. ETH remained in a short-term bearish zone and extended losses below the $3,500 level.
The price fell below the $3,450 support level. A low was formed at $3,428 and the price is now covering losses. There was a slight increase above the 23.6% Fib retracement level of the recent decline from the $3,655 swing high to the $3,428 low.
Ethereum is still trading below $3,550 and the 100-hour Simple Moving Average. There is also an important bearish line forming with resistance near $3,550 on the hourly chart of ETH/USD. If there is a fresh rise, the price may face resistance near the $3,540 level and the 50% Fib retracement level of the recent decline from the $3,655 swing high to the $3,428 low.
The first major resistance is near the $3,550 level and the trend line. An upside break above the $3,550 resistance could send the price higher. The next key resistance remains at $3,650, above which the price may gain strength and rise to the $3,720 level.
A clear move above the $3,720 level could send Ether to the $3,800 resistance. Any further gains could send Ether to the $3,880 resistance area.
More downside to ETH?
If Ethereum fails to clear the $3,550 resistance, it could continue to decline. Initial support on the downside is near $3,420.
A clear move below the $3,420 support could push the price to $3,350. Another loss could send the price to the $3,250 level in the near term.
Technical References
MACD per hour – MACD of ETH/USD is losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Major Support Level – $3,420
Major Resistance Level – $3,550
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