Ethereum failed to clear a major hurdle near $3,165 against the US Dollar. ETH price is declining and it remains at a risk of a move below $2,800.
Ethereum started an upside correction above $3,000, but it failed near $3,165.
The price is now trading below $3,000 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $3,030 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend decline if it breaks the $2,900 support zone in the near term.
Ethereum Price Is Trimming Gains
Ethereum started a fresh increase from the $2,740 low, similar to bitcoin. ETH broke the $2,950 and $3,000 resistance levels. It also cleared the $3,100 level and the 100 hourly simple moving average.
However, the bears protected a major refection zone near $3,165. A high was formed near $3,165 and the price started a fresh decline. Ether price declined below the $3,100 and $3,050 support levels. The price even traded below the 50% Fib retracement level of the upward move from the $2,740 swing low to $3,165 high.
It is now trading below $3,000 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $3,030 on the hourly chart of ETH/USD. On the upside, an immediate resistance is near the $3,000 level and the 100 hourly simple moving average.
The first major resistance is near the $3,030 level. A break above $3,000 and $3,030 could lead the price towards the main breakout zone at $3,165. A close above the $3,165 resistance could push the price further higher towards $3,320.
More Losses in ETH?
If ethereum fails to continue higher above the $3,000 and $3,030 resistance levels, it could extend its decline. An initial support on the downside is near the $2,920 level.
The next major support seems to be forming near the $2,900 level. It is close to the 61.8% Fib retracement level of the upward move from the $2,740 swing low to $3,165 high. If ether fails to stay above $2,900, it could accelerate lower towards the $2,740 swing low.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $2,900
Major Resistance Level – $3,030
