Ethereum Retests Key Support, What Could Trigger More Downsides
Ethereum failed to clear the $3,280 resistance and corrected lower against the US Dollar. ETH price must stay above $3,140 to avoid more downsides in the near term.
Ethereum seems to be facing a strong resistance near $3,280 and $3,300.
The price is now trading below $3,200 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $3,185 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue lower if it fails to stay above the $3,140 support zone.
Ethereum Price is Facing Hurdles
Ethereum made another attempt to gain strength above $3,260 and $3,280. However, ETH price failed to continue higher above $3,280 and started a downward move, similar to bitcoin.
The price broke the $3,220 and $3,200 support levels. There was also a break below a key bullish trend line with support near $3,185 on the hourly chart of ETH/USD. The pair settled below $3,200 and the 100 hourly simple moving average.
Ether tested the $3,150 and $3,140 support levels. A low is formed near $3,142 and the price is now consolidating losses. An immediate resistance is near the $3,170 level. It is near the 23.6% Fib retracement level of the recent decline from the $3,260 swing high to $3,142 low.
Source: ETHUSD on TradingView.com
On the upside, the first key resistance is near the $3,200 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the $3,260 swing high to $3,142 low. The main resistance is now forming near the $3,220 level. A clear break above the $3,220 resistance might open the doors for a steady increase. The next key resistance sits at $3,280 and $3,300.
More Losses in ETH?
If ethereum fails to continue higher above the $3,200 and $3,220 resistance levels, it could extend its decline. An immediate support on the downside is near the $3,150 level.
The next major support is now forming near the $3,140 zone. A downside break below the $3,140 support zone could accelerate losses. In the stated scenario, ether price could revisit the $3,060 support zone.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,140
Major Resistance Level – $3,220