TA: Ethereum Topside Bias Vulnerable If It Continues To Struggle Below $3.2K
Ethereum extended decline below the $3,200 support zone against the US Dollar. ETH price remains at a risk of a sharp decline below $3,000.
- Ethereum extended decline below the $3,200 and $3,150 support levels.
- The price is trading below $3,200 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $3,120 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it clears the $3,120 and $3,150 resistance levels.
Ethereum Price Faces Resistance
Ethereum extended decline below the $3,200 support zone. ETH even broke the $3,150 support level and settled below the 100 hourly simple moving average.
There was even a break below the $3,120 level. A low is formed near $3,050 and currently correcting losses. It is now approaching the $3,085 resistance. The stated level is near the 23.6% Fib retracement level of the recent drop from the $3,192 swing high to $3,050 low.
The first major resistance is near the $3,120 level. There is also a major bearish trend line forming with resistance near $3,120 on the hourly chart of ETH/USD. The trend line is near the 50% Fib retracement level of the recent drop from the $3,192 swing high to $3,050 low.
Source: ETHUSD on TradingView.com
If there is an upside break above the trend line, the price could rise towards the $3,200 resistance zone. The next major resistance is near the $3,225 level, above which ether price could gain bullish momentum. In the stated case, the price could rise towards $3,350 in the near term.
More Losses in ETH?
If ethereum fails to start a fresh increase above the $3,120 level, it could continue to move down. An initial support on the downside is near the $3,050 level.
The first key support is now forming near the $3,000 level. A downside break below the $3,000 level might accelerate losses in the near term. The next major support for the bulls may perhaps be near the $2,880 handle. Any more losses may perhaps push the price towards the $2,750 level in the coming days.
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is still well below the 50 level.
Major Support Level – $3,050
Major Resistance Level – $3,120
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