TA: Ethereum Revisits Key Support, Why Recovery Could be Capped
Ethereum extended decline below the $3,300 support zone against the US Dollar. ETH price could recover from $3,120, but it might face hurdles near $3,250.
- Ethereum extended decline below the $3,300 and $3,250 support levels.
- The price is trading below $3,250 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $3,180 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it clears the $3,200 and $3,250 resistance levels.
Ethereum Price Struggles
Ethereum extended decline below the $3,250 support zone. ETH even broke the $3,200 support level and settled below the 100 hourly simple moving average.
It traded as low as $3,129 and is currently correcting higher. There was a minor move above the $3,150 level. The price is now facing resistance near the $3,180 level. There is also a key bearish trend line forming with resistance near $3,180 on the hourly chart of ETH/USD.
The trend line is near the 23.6% Fib retracement level of the recent decline from the $3,392 swing high to $3,129 low. If there is an upside break above the trend line, the price could rise towards the $3,250 resistance zone.
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the recent decline from the $3,392 swing high to $3,129 low is also near the $3,250 level to act as a hurdle. A clear move above the $3,250 level might pump the price in the near term. The next major resistance is near the $3,400 level, above which ether price could gain bullish momentum. In the stated case, the price could rise towards $3,550 in the near term.
More Losses in ETH?
If ethereum fails to start a fresh increase above the $3,200 level, it could continue to move down. An initial support on the downside is near the $3,140 level.
The first key support is now forming near the $3,120 level. A downside break below the $3,120 level might push the price further lower. The next major support for the bulls may perhaps be near the $3,000 handle.
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is still well below the 50 level.
Major Support Level – $3,120
Major Resistance Level – $3,250
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