Categories: Payment system news

TA: Ethereum Extends Decline, Why ETH Could Revisit $3K

Ethereum extended its decline below the $3,200 support against the US Dollar. ETH price is at a risk of more downsides below the $3,120 support zone.

  • Ethereum extended its decline below the $3,250 and $3,200 support levels.
  • The price is now trading below $3,250 and the 100 hourly simple moving average.
  • There is a key bearish continuation pattern forming with support near $3,170 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue lower if it fails to stay above the $3,120 support zone.

Ethereum Price Corrects Lower

Ethereum failed to stay above the $3,300 support zone and extended its losses. ETH price broke the key $3,250 support zone to enter a bearish zone, similar to bitcoin.

The price even broke the $3,200 support level and the 100 hourly simple moving average. Ether traded as low as $3,150 and it is now consolidating losses. It recovered above the $3,170 and $3,180 levels. There was a break above the 23.6% Fib retracement level of the recent decline from the $3,380 swing high to $3,150 low.

It is now consolidating below $3,250 and the 100 hourly simple moving average. There is also a key bearish continuation pattern forming with support near $3,170 on the hourly chart of ETH/USD.

On the upside, an initial resistance is near the $3,200 and $3,220 levels. A clear break above the triangle resistance and $3,220 might call for a steady increase. The next key resistance is now forming near the $3,265 level. It is close to the 50% Fib retracement level of the recent decline from the $3,380 swing high to $3,150 low.

Source: ETHUSD on TradingView.com

Any more gains may possibly call for a move towards the $3,300 level in the near term. An intermediate resistance may possibly be near the $3,292 level.

More Losses in ETH?

If ethereum fails to continue higher above the $3,200 and $3,220 resistance levels, it could extend its decline. An immediate support on the downside is near the $3,150 level.

The key support is now forming near the $3,120 zone. A downside break below the $3,120 support zone could push the price further lower. The next major support could be $3,000.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is still below the 50 level.

Major Support Level – $3,120

Major Resistance Level – $3,265

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