TA: Why Ethereum At Risk of Fresh Decline, $3,200 Holds The Key
Ethereum struggling to clear the $3,400 resistance against the US Dollar. ETH price is holding the $3,250 support, but there is a risk of more downsides.
- Ethereum started a downside correction from the $3,400 resistance zone.
- The price is trading below $3,300 and the 100 hourly simple moving average.
- There was a break below a key rising channel with support near $3,320 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it stays above the $3,250 support zone.
Ethereum Price Corrects Lower
Ethereum made another attempt to clear the $3,400 resistance zone. ETH failed to gain strength and corrected lower from the $3,391 swing high.
There was a break below the $3,320 and $3,300 support levels. Ether price even settled below $3,300 and the 100 hourly simple moving average. Besides, there was a break below a key rising channel with support near $3,320 on the hourly chart of ETH/USD.
A low is formed near $3,238 and the price is now correcting higher. There was a break above the 23.6% Fib retracement level of the recent decline from the $3,391 swing high to $3,238 low.
On the upside, an immediate resistance is near the $3,300 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the $3,391 swing high to $3,238 low.
Source: ETHUSD on TradingView.com
The first major resistance is near the $3,320 level. A clear move above the $3,320 level might start another increase 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 test $3,550 level in the near term.
More Losses in ETH?
If ethereum fails to start a fresh increase above the $3,300 level, it could continue to move down. An initial support on the downside is near the $3,250 level.
The first key support is now forming near the $3,200 level. A downside break below the $3,200 level might push the price further lower. Any more losses could lead the price towards $3,000.
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is below the 50 level.
Major Support Level – $3,200
Major Resistance Level – $3,320