Ethereum began a steep decline against the US dollar at $3,180. To avoid a future trend shift, ETH bulls need to protect the $2950 support.
- Ethereum lost strength beyond $3,150 and began a new decline.
- Now, the price has risen to $3,000. The 100-hourly moving average is at $1.
- The hourly chart for ETH/USD showed a breaking below the key bullish trendline with support at $3,100 (data feed via Kraken).
- To avoid further downsides, the pair should not fall below the $2950 support.
Ethereum’s Price Drops
Ethereum tried to move clear above the $3150 resistance level. ETH was unable to surpass the $3,150 resistance zone and reached a temporary high of $3,180.
The price reached a high of $3,179 before it began a steep decline. The price fell below the $3,000.00 support zone as well as the simple 100 hour moving average. On the hourly chart of Ethereum/USD, it was clear that there was a move below a crucial bullish trend line, with support close to $3,100.
The 50% Fib level for the uptrend from $2,880 swing lows to $3,179 highs was below which Ether’s price fell. It even crossed the $2950 support zone.
Bulls appear to be protecting the 76.4% Fib Retracement level for the upward wave that ran from $2,880 swing high to $3,179 low. An initial resistance level is near the $3,000.020 level. Next is the $3,000.030 level.
Source: TradingView.com, ETHUSD
The current resistance is located near the $3,060 level and the 100-hourly simple moving average. An increase in price above $3,060 could signal a new uptrend. The above scenario could see ether rise towards the $31,150 mark.
What are the Downsides of ETH?
Ethereum could move lower if it does not gain momentum above the $3,000.00 level. Initial support is located near the $2970 level.
Near the $2,950 support level is the first major support. A downside breakout below the $2950 level could cause the price to accelerate down. Next is the $2880 area.
Indicators of technical importance
Hourly MACD – MACD is losing speed in the bearish area for USD/ETH.
Hourly RSI – The RSI is currently below the 50 level for Ethereum/USD.
Major Support Level – $2,950
Major Resistance Level – $3,060
