Ethereum Could Avoid a Major Downtrend if it Closes Above One Key Level
Ethereum declined heavily below the $3,250 support against the US Dollar. ETH price tested $3,000 before it attempted an upside correction.
Ethereum started another decline and traded below the $3,150 support zone.
The price is trading below $3,250 and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $3,100 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a major recovery wave if there is a clear move above $3,300.
Ethereum Price Remains At Risk
Ethereum failed to clear the $3,350 resistance level and started another major decline. ETH declined below the $3,250 and $3,120 support levels to move further into a bearish zone.
The price spiked towards $3,000 and traded as low as $3,006. Recently, there was a minor upside correction above the $3,120 and $3,150 levels. Besides, there was a break above a key bearish trend line with resistance near $3,100 on the hourly chart of ETH/USD.
Ether price even climbed above $3,200, but there was no upside continuation. Ether price started a fresh decline and traded below $3,200.
The price declined below the 23.6% Fib retracement level of the upward move from the $3,006 swing low to $3,209 high. On the upside, an immediate resistance is near the $3,200 level. The next major resistance is near the $3,250 level and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
The main resistance is near the $3,000 level. A clear upside break above the $3,300 level could spark a decent recovery wave. The next key resistance is near the $3,450 level.
More Losses in ETH?
If ethereum fails to start a fresh increase above the $3,250 level, it could continue to move down. An initial support on the downside is near the $3,120 level.
The first key support is now forming near the $3,100 level. It is near the 50% Fib retracement level of the upward move from the $3,006 swing low to $3,209 high. A downside break below the $3,100 level might lead the price towards the key $3,000 support in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now moving into the bearish zone.
Hourly RSI – The RSI for ETH/USD is above the 50 level.
Major Support Level – $3,100
Major Resistance Level – $3,300
