Ethereum deepened its decline and tested $3,600. He is currently struggling to recover, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Continues Its Fall
Ethereum failed to stay above the $3,880 and $3,850 support levels yesterday and deepened its decline. There was a sharp move below the $3,700 level and the price settled below the 100 hourly simple moving average. A local bottom was formed near $3,602 and it is currently consolidating losses. 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 near the 50% Fib retracement level of the recent decline from the $3,827 low to $3,602 low. ETH must surpass the $3,715 resistance for it to start a decent recovery.
In the indicated case, the price could rally towards the $3,850 level or the 100 hourly simple moving average. Any further gains could send the price towards the $4,000 level.
Ethereum Drops More?
Jindal says that if Ethereum fails to start a fresh increase above the $3,715 level, it may continue to move lower. An initial support on the downside is near the $3,600 level or the recent low. An initial key support is currently 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 to the $3,200 support zone in the near term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is near the 30 level.
- Main Support Level – $3,600
- Main Resistance Level – $3,715
