Ethereum began a steep decline against the US Dollar from the $3530 area. The ETH price plunged to $3260, but is now correcting higher.
- Ethereum began a significant decline after the $3,530 resistance area.
- The current price trades below $3,400.
- On the hourly chart for ETH/USD, there is a significant bearish trend line with resistance at $3,460 (data feed via Kraken).
- This pair may face resistance at the levels of $3,425 or $3,450.
Ethereum price dives 5%
Ethereum was unable to keep pace with the $3.525 resistance level and the $3.530 resistance level. ETH reached a high of $3,525 and then began a steep decline.
Below the support levels of $3,450, $3,420, and $3,450, prices declined. The price also fell below the $3,000. level, and the simple 100-hour moving average. The $3,300 mark was the lowest level. It was trading as low as $3.261 at one point and has since corrected its losses.
The $3,300 mark was the highest level of recovery. The decline from $3,580 swing high, to $3,261 low, was broken by the Fib level at 23.6%.
Resistance is currently near the $3,000. Near the $3,420 mark is the next significant resistance. This coincides with 50% Fib Retracement of the decline from $3,580 swing high, to $3,261 lowest. On the hourly chart for ETH/USD, there is a significant bearish trend line with resistance at $3,460.
Source: TradingView.com ETHUSD
A decent price increase could be possible if the price reaches or exceeds $3,450. If the previous scenario is true, then the price might rise to the $3,500 area. Near the $3,525 mark, the next barrier of importance, the bears may take a stand.
Are There More Perils in Ethereum?
It could begin a new decline if ethereum does not start an increase above $3,420. Near the $3,300 mark is initial support.
Next major support will be at the $3250 level. A downside breakout below the support level of $3,250 could cause the price to accelerate downwards. There is the possibility of the price moving towards $3,050 in the above scenario.
Indicators of technical importance
Hourly MACD – In the bearish zone, the MACD for USD/ETH is gradually losing speed.
Hourly RSI – The RSI is currently below the 50 level for Ethereum/USD.
Major Support Level – $3,250
Major Resistance Level – $3,420
