TA: Ethereum Retests Key Support, What Could Trigger More Downsides

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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.

Technical Indicators

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

via NewsBTC

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