Ethereum extended decline below the $3,000 support against the US Dollar. ETH price tested the $2,850 support, below which it could nosedive.
Ethereum started a sharp decline below the $3,000 support level.
The price is now trading below $2,950 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $3,065 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend losses if it fails to stay above the USD 2,850 support.
Ethereum Price Dive To Major Support
Ethereum failed to stay above the $3,000 support zone and extended decline. ETH remained below $3,000 and broke the $2,950 support zone. The decline gained pace below the $2,900 level and the 100 hourly simple moving average.
More importantly, there was a break below a key bullish trend line with support near $3,065 on the hourly chart of ETH/USD. The pair spiked below the $2,880 level and tested the main $2,850 support level.
A low is formed near $2,850 and the price is now consolidating losses. An immediate resistance on the upside is near the $2,920 level. The first major resistance is near the $2,930 level. It is near the 23.6% Fib retracement level of the recent slide from the $3,196 swing low to $2,850 low.
The next major resistance is near the $2,965 level. A clear move above the $2,965 might send the price to $3,000. The 50% Fib retracement level of the recent slide from the $3,196 swing low to $2,850 low is also near the $3,020 resistance zone.
A successful close above $3,020 might start a steady increase. In the stated case, the price could rise towards $3,200.
More Losses in ETH?
If ethereum fails to start a recovery wave above the $2,965 level, it could continue to move down. An initial support on the downside is near the $2,880 level.
The next major support is near the $2,850 level. A downside break below the $2,850 could spark another major decline. The next major support is near the $2,800 level. Any more losses might call for a move towards $2,720.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 40 level.
Major Support Level – $2,850
Major Resistance Level – $2,965
