- Ethereum price started a fresh decline from well above $3,500 against the US Dollar.
- ETH price is currently trading well below $3,500 and the 55 simple moving average (4-hours).
- There is a major declining channel forming with resistance near $3,600 on the 4-hours chart (data feed from Coinbase).
- The pair must stay above $3,000 to start a fresh increase in the coming sessions.
Ethereum price extended its decline below $3,500 against the US Dollar. ETH/USD is approaching the $3,000 level, where the bulls might take a strong stand.
Ethereum Price Analysis
After a failed attempt to rally above the $4,000 level, ethereum started a fresh decline against the US Dollar. ETH broke many supports near $3,500 to move into a bearish zone.
There was a strong decline below the $3,500 level and the $3,350 support levels. It is now trading well below $3,500 and the 55 simple moving average (4-hours). The price is approaching the $3,000 support zone and the recent low was formed near $3,062.
On the upside, an initial resistance is near the $3,320 level. It is close to the 23.6% Fib retracement level of the recent decline from the $4,181 swing high to $3,062 low.
The next key resistance is near the $3,600 zone. There is also a major declining channel forming with resistance near $3,600 on the 4-hours chart. The channel resistance is close to the 50% Fib retracement level of the recent decline from the $4,181 swing high to $3,062 low.
A clear break above the channel resistance could lead the price towards the 55 simple moving average (4-hours). The next main resistance is near the $4,000 level.
On the downside, the $3,000 level is a key support. If there is a downside break below the $3,000 zone, the price could dive another 5%-8% in the near term. The next major support may possibly be near the $2,800 level.
Looking at the chart, Ethereum price is clearly trading well below the $3,500 level and the 55 simple moving average (4-hours). Overall, ether price must stay above $3,000 to start a fresh increase in the coming sessions.
Technical indicators
4 hours MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is now approaching the 35 level.
Key Support Levels – $3,000, followed by the $2,800 zone.
Key Resistance Levels – $3,320 and $3,600.
