Ethereum Breaks Key Support, Why Decline Isn’t Over Yet

Ethereum experienced bearish sentiment below the level of $3,100 against the US dollar. The ETH market fell further and closed below the $3,000 support level.

  • Ethereum began a decline, trading below the $3,000 threshold.
  • The current price trades below $3,050.
  • A connecting bearish trendline is visible with resistance at $2,990 (data feed via Kraken).
  • However, the upsides of this pair might not be as good as it used to be.

Ethereum’s Price Continues to Decline

Ethereum maintained a bearish trend below $3,120. ETH moved further into a bearish area after breaking the $3,000 key support zone.

Even below $2,980 was pushed by the bears. The price has been consolidating its losses since a low was formed at $2,951. Aside from that, the ether price has fallen below $3,050 as well as the 100-hourly simple moving median. An initial resistance level of $2,990 is expected to be the best.

A connecting bearish trendline is also visible on the hourly chart for ETH/USD. It forms resistance at $2,990. Next is resistance at the $3,000.35 level. This is close to the 23.6% Fib Retracement Level of the recent fall from $3,308 high swing low to $2,951 high.

An increase in the level above $3,035 could signal a solid recovery wave. Near the $3,130 mark could lie next to major resistance. Near $3,130 is the 50% Fib Retracement Level of the decline from $3,308 swing highs to $2,951 lows.

Ethereum Price

Source: TradingView.com ETHUSD

The chances of trend changes could be increased if the price moves above the $3.130 resistance. The price may rise above $3,150 in the case mentioned.

Are There More Losses in Ethereum?

Ethereum could fall further if there is no recovery wave at the $3,035 mark. Near the $2,965 level is initial support.

Next major support will be at the $2950 level. The price may continue to fall if it breaks below $2,950. If this happens, then the price of the stock could fall towards $2,820, or even $2,000.

Technical Indicators

Hourly MACDSlowly, the MACD of ETH/USD slows down in the bearish area.

Hourly RSIThe RSI of ETH/USD has now corrected higher to the level 40.

Major Support Level – $2,950

Major Resistance Level – $3,035

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