To enter a bearish area against the US Dollar, Ethereum crossed the $28,820 level. ETH still faces downside risks below $2,740.
- After failing to surpass the $2,880 mark, Ethereum began a new decline.
- The 100-hourly simple moving average and price are now below $2,820.
- The hourly chart for ETH/USD showed a break below the key channel of rising support with support at $2,820 (data feed via Kraken).
- To start a wave of recovery, the pair must overcome resistances levels at $2,800 or $2,820.
Ethereum price declines
Ethereum attempted to make an upside breakout above the $2900 resistance. ETH was unable to surpass the $2880 resistance and fell again.
A break was seen below the $2.850 and $2.820 support levels. Price fell sharply below 50% Fib Retracement of the upward movement from $2,718 swing high to $2,881 low. On the hourly chart, ETH/USD also showed support for $2,820. There was also an abrupt break below a crucial rising channel.
The Ether price currently trades below $2,820 as well as the 100-hourly simple moving average. Also, it tested the 76.4% Fib level of the upward swing from the $2718 swing low, to the $2,881 high.
The current price consolidation is near the $2790 mark. The upside is that a first resistance can be seen at the $2,800 mark and an adjacent bearish trend line are visible on the chart. Near the $2820 level is the next significant resistance and the 100 hourly simplemoving average.
Source: TradingView.com, ETHUSD
The steady upward movement could begin with a move that is clear above the $2,820 support. If the above is true, the price of ether could rise to the $2,880 level. A move higher than $2,920 may be possible with further gains.
Are There More Losses in Ethereum?
It could fall further if it fails to climb above $2,820. The $2,750 area is the initial support for the downside.
Next major support will be at the $2720 level. A downside breakout below the $22,220 level could lead to bearish momentum. There is the possibility of the price moving towards $2,600 in the above scenario.
Technical Indicators
Hourly MACD – MACD is losing speed in the bearish area for USD/ETH.
Hourly RSI – The RSI of ETH/USD is less than the 50 level.
Major Support Level – $2,720
Major Resistance Level – $2,820