TA: Ethereum Plunges 5%, Can Buyers Save The Key $3.5K Support
Ethereum gained bearish momentum below the $3,720 support against the US Dollar. ETH price tested $3,600 and currently struggling to recover higher. Ethereum started a major decline below the $3,850 and $3,750 support levels. The price is trading below $3,800 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $3,715 on the hourly chart of ETH/USD (data feed via Kraken). The pair must stay above $3,500 to avoid more downsides in the near term. Ethereum Price Extends Decline Ethereum failed to stay above the $3,880 and $3,850 support levels. ETH extended decline and traded below the key $3,750 support zone. There was a sharp move below the $3,700 level and the price settled below the 100 hourly simple moving average. It traded as low as $3,602 and is currently consolidating losses. An immediate resistance on the upside is near the $3,655 level. It is near the 23.6% Fib retracement level of the recent decline from the $3,827 swing high to $3,602 low. The next major resistance is near the $3,715 level. There is also a key bearish trend line forming with resistance near $3,715 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent decline from the $3,827 swing high to $3,602 low. To start a decent recovery, the price must clear the $3,715 resistance. Source: ETHUSD on TradingView.com In the stated case, the price could rise towards the $3,850 level or the 100 hourly simple moving average. Any more gains could send the price towards the $4,000 level. More Downsides in ETH? If ethereum fails to start a fresh increase above the $3,715 level, it could continue to move down. An initial support on the downside is near the $3,600 level or the recent low. The first key support is now forming near the $3,550 and $3,500 levels. A downside break below the $3,550 and $3,500 levels could put a lot of pressure on the bulls. In the stated case, the price could decline towards the $3,200 support zone in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is now losing pace in the bearish zone. Hourly RSI – The RSI for ETH/USD is near the 30 level. Major Support Level – $3,600 Major Resistance Level – $3,715