Ethereum rebounded above $ 3,400 and $ 3,500 against the US dollar. ETH price is struggling near $ 3,600 and could begin another decline.
- Ethereum bounced back to $ 2,900 after a sharp drop.
- The price is still trading well below $ 3,600 and the 100-hour simple moving average.
- The ETH / USD hourly chart (data feed via Kraken) broke through a major bearish trendline with resistance near USD 3,500.
- The pair could begin another decline unless there is a clear break above $ 3,600.
The Ethereum price is facing resistance
Ethereum fell sharply below $ 3,500 and $ 3,200. ETH even broke the USD 3,000 support and settled below the simple 100-hour moving average, similar to Bitcoin. It traded as low as $ 2,900 before an upward correction set in.
There was a break above the $ 3,300 and $ 3,400 resistance levels. The price even climbed above the USD 3,500 resistance zone. The ETH / USD hourly chart broke through a major bearish trendline with resistance near USD 3,500.
However, the bears appear to be defending the $ 3,600 zone. A high is forming at $ 3,561 and the price is slowly moving down. Ether is now trading well below $ 3,600 and the 100-hour simple moving average.
There was also a break below the 23.6% fib retracement level of the latest wave from the $ 3,218 low to the $ 3,561 high. Price is now testing the same broken trendline at $ 3,440. Immediate resistance to the upside is near the $ 3,500 mark.
Source: ETHUSD on TradingView.com
The first major resistance is near the $ 3,560 mark. A proper move above the $ 3,560 and $ 3,600 levels could increase the chances of a steady rise. The next major resistance is at $ 3,680.
More losses in ETH?
If Ethereum fails to break above the USD 3,500 and USD 3,560 resistance levels, it could trigger another downward move. Immediate support on the downside is near the $ 3,400 mark.
The next big support is now forming near the $ 3,380 zone. It is near the 50% fib retracement level of the recent wave from the low of $ 3,218 to the high of $ 3,561. The main support is near $ 3,335, below which the price could test the $ 3,200 zone.
Technical indicators
Hourly MACD – The MACD for ETH / USD is slowly losing pace in the upward zone.
Hourly RSI – The RSI for ETH / USD is now below the 50 level.
Great level of support – $ 3,380
Great resistance level – $ 3,560
