Ethereum Revisits $2.8K, Why Upsides Might Be Limited

Ethereum continued to decline against the US dollar, falling below the $3,000.30 resistance. ETH even climbed below $2,800. Currently, it is trying an upside correction.

  • Ethereum experienced a dramatic drop below the support levels of $2,950 and 2,860.
  • The current price trades below $2,950.
  • A key bearish trend line is emerging with resistance close to $2,910 (data feed via Kraken).
  • For a long-term recovery to be meaningful, both partners must remain above $2800.

Ethereum price re-enters decline

Ethereum was unable to move at the speed required for above the $3,000.00 resistance. ETH reached a peak and began a significant decline below $2,950.

A sharp drop below the $2,000.00 level and the simple 100 hour moving average was observed. The Ether price even soared to below the $2800 support zone. The price has now been consolidating its losses and is at $2,766 for a new weekly low. The price recovered to above $2,800.

A break was seen above the 23.6% Fib Retracement level, which is the current decline from the $3.041 swing high to the $2.766 low. Surprisingly, resistance can be seen at the $2,860 mark.

Next is resistance at the level of $2,900. On the hourly chart for ETH/USD, there is a bearish trend line that forms with resistance at $2,910 near. This trend line lies close to the 50% Fib Retracement level for the decline from $3,041 swing high, to $2,766 low.

Ethereum Price

Source: TradingView.com ETHUSD

Another increase could be initiated by a clear break above the $2.910 resistance. Next major resistance could be at $2,950. If the gains continue, the price may reach the $3,000.30 mark.

What Are the Losses of ETH More?

It could fall further if it fails to grow above $2,900. The $2,800 level is the initial support for the downside.

At $2,765, the initial major support will be found. The price may fall further if it breaks below that $2,765 resistance. Near the $2650 area, which is where there are most of the key supports, is the risk of another decline to $2,500.

Technical Indicators

Hourly MACDIn the bearish zone, the MACD of ETH/USD has been losing momentum.

Hourly RSIThe RSI is below 50 for USD/ETH.

Major Support Level – $2,765

Major Resistance Level – $2,910

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