Ethereum saw a sharp decline in the US Dollar against Ethereum after it reached the $2970 area. ETH dropped below $2800 and may accelerate to $2700 below.
- After it fell below $2,970, Ethereum began a significant decline.
- Now, the price is trading at $2800 below its simple moving average of 100 hours.
- A break was seen below a bullish trend line, with support close to $2900 in the hourly chart of Ethereum/USD (datafeed via Kraken).
- If the pair closes below $2,700 support area, it could fall further.
Ethereum Price Dives
Ethereum was unable to break the $2950 barrier. ETH reached near $2,970 and began a new decline. The ETH price dropped sharply below $2,900 and $2.850.
A break was also observed below the key bullish trendline with support at $2,900 in the hourly chart for ETH/USD. Below the $2,800 level the Ether price dropped below the simple moving average of 100 hours. Finally, the price spiked below $2,720 support.
Near $2,678 was the low point and it corrected slightly. The price recovered above $2,720. Price even rose above 23.6% Fib level, which is the retracement of recent falls from $2.969 swing high, to $2.678 low.
Surprisingly, a first resistance is located near $2,760. Near the $2,820 mark is the first significant resistance. This is close to the 50% Fib Retracement level for the recent fall from the $2.969 swing high and low to the $2.678 low. Now, the main breakout area is at or near $2,875.
Source: TradingView.com ETHUSD
An increase above $2875 could allow for an acceptable rise. If this happens, then the price might reach the $3,000 mark.
Are There More Personal Losses with ETH
It could fall further if it fails to climb above $2,760. The $2,720 area is the initial support for the downside.
Near the $2,680 mark is the next support. A downside breakout below $2,680 or the low of recent months could cause a steeper decline in ether prices. It could fall below $2,600 in this scenario.
Technical Indicators
Minutely MACD – MACD is currently in bearish territory for USD/ETH.
Hourly RSI – The RSI of ETH/USD has fallen to well below 50.
Major Support Level – $2,680
Major Resistance Level – $2,760