Ethereum began a steep decline against the US Dollar at $3,000 ETH currently trades below $2900, and could fall to $2800 in the short term.
- Following a move to below $3,000. Ethereum experienced a significant decline.
- The current price trades above $2,900.
- A key bearish trend line is emerging with resistance close to $2,935 in the hourly chart of Ethereum/USD (datafeed via Kraken).
- To avoid further downsides, the pair should not fall below the $2840 support.
Ethereum Price Dives
Ethereum made a strong move beyond the $3,000 zone. ETH was unable to surpass the $3,000 resistance zone and reached a near-term high of $2,980.
The price reached a high of $2,967 at which point it began a steep decline. Clear movement below the $2950 support level and the 100-hourly simple moving average was evident. The price fell below $2,900 thanks to the bears.
Near $2,840, a low was established and Ether is currently consolidating its losses. Ether trades above the 23.6% Fib Retracement level for the decline from $2,967 swing high, to $2,840 low.
The $2,900 mark is the initial resistance. This is close to the 50% Fib level of the decline from $2,967 high to $2.840 low. Near the $2,930 mark is the next significant resistance. A key bearish trendline is also visible on the hourly chart. It points to resistance around $2,935
Source: TradingView.com ETHUSD
The 100-hourly moving average and $3,000 are the major resistance levels. The $3,000 threshold could be a barrier to ether’s rise. The above scenario could see ether rise towards $3,050.
There are more downsides to ETH
Ethereum could move lower if it fails to grow above the $2.930 level. The $2,850 area is the initial support for the downside.
Near the $2,840 support level is the first major support. A downside breakout below the $2840 level could cause the price to accelerate downward. Next is the $2,000.
Technical indicators
Hourly MACD – Now, the MACD of ETH/USD has been moving in the bearish area.
Hourly RSI – The RSI is currently below 50 for Ethereum/USD.
Major Support Level – $2,840
Major Resistance Level – $2,930
