Ethereum Dives Below $3K, Can The Bulls Save Day?

Ethereum started a sharp decline from $ 3,180 against the US Dollar. ETH bulls must protect the $ 2,950 support to avoid a trend change in the near term.

  • Ethereum failed to gain strength above $ 3,150 and started a fresh decline.
  • The price is now trading above $ 3,030 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $ 3,100 on the hourly chart of ETH / USD (data feed via Kraken).
  • The pair must stay above the $ 2,950 support to avoid more downsides in the near term.

Ethereum Price Dips

Ethereum attempted a clear move above the $ 3,150 resistance zone. However, ETH failed to gain strength above the $ 3,150 level and formed a short-term top near $ 3,180.

A high was formed at $ 3,179 and the price started a sharp decline. There was a clear move below the $ 3,100 support zone and the 100 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near $ 3,100 on the hourly chart of ETH / USD.

Ether price declined below the 50% Fib retracement level of the upward wave from the $ 2,880 swing low to $ 3,179 high. The price even tested the $ 2,950 support zone.

It seems like the bulls are defending the 76.4% Fib retracement level of the upward wave from the $ 2,880 swing low to $ 3,179 high. On the upside, an initial resistance is seen near the $ 3,020 level. The next major resistance is near the $ 3,030 level.

Ethereum Price

Source: ETHUSD on TradingView.com

The main resistance now sits near $ 3,060 and the 100 hourly simple moving average. A close above the $ 3,060 level might start a fresh rise in the near term. In the stated case, ether might climb towards the $ 3,150 level.

More Downsides in ETH?

If ethereum fails to gain pace above the $ 3,030 level, it could continue to move down. An initial support on the downside is near the $ 2,970 zone.

The first major support is near the $ 2,950 level. If there is a downside break below the $ 2,950 support, the price could accelerate lower. The next key support is near the $ 2,880 zone.

Technical Indicators

Hourly MACDThe MACD for ETH / USD is now losing pace in the bearish zone.

Hourly RSIThe RSI for ETH / USD is now below the 50 level.

Major Support Level – $ 2,950

Major Resistance Level – $ 3,060

Source

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