20 March 2024
Ethereum price extended its decline below $3,200. ETH is struggling and it seems like the bears are now aiming for a move toward the $3,000 support zone.
Ethereum started a downside correction below the $3,350 zone.
The price is trading below $3,350 and the 100-hourly Simple Moving Average.
There is a major bearish trend line forming with resistance at $3,420 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could resume its decline if it stays below the $3,420 and $3,500 resistance levels.
Ethereum Price Breaks Support
Ethereum price remained in a short-term bearish zone below the $3,550 and $3,500 levels, like Bitcoin. ETH declined below the $3,350 support level to move further in a short-term bearish zone.
Finally, the price traded below the $3,200 support. A low was formed at $3,162 and the price is now consolidating losses. It is showing a few bearish signs below the 23.6% Fib retracement level of the downward wave from the $3,675 swing high to the $3,162 low.
Ethereum price is now trading below $3,350 and the 100-hourly Simple Moving Average. On the upside, immediate resistance is near the $3,280 level. The first major resistance is near the $3,350 level.
The next key resistance sits at $3,420. There is also a major bearish trend line forming with resistance at $3,420 on the hourly chart of ETH/USD. It is close to the 50% Fib retracement level of the downward wave from the $3,675 swing high to the $3,162 low.
Source: ETHUSD on TradingView.com
The next major resistance is near $3,550, above which the price might gain bullish momentum. In the stated case, Ether could rally toward the $3,650 level. If there is a move above the $3,650 resistance, Ethereum could even rise toward the $3,800 resistance. Any more gains might call for a test of $4,000.
More Losses In ETH?
If Ethereum fails to clear the $3,420 resistance, it could continue to move down. Initial support on the downside is near the $3,260 level.
The first major support is near the $3,200 zone. The next key support could be the $3,120 zone. A clear move below the $3,120 support might send the price toward $3,050. Any more losses might send the price toward the $3,000 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,260
Major Resistance Level – $3,420