Ethereum (ETH) Steadies Above $3K, What Could Trigger Fresh Drop

Ethereum is holding gains above the $3,000 support zone against the US Dollar. ETH price is now facing resistance near the $3,150 and $3,180 levels.

  • Ethereum started a downside correction after it failed to stay above $3,200.
  • The price is now recovering above $3,100 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $3,140 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh decline unless it surpasses the main $3,180 resistance zone.

Ethereum Price is Facing Hurdles

Ethereum struggled to stay above the $3,200 zone and started a fresh decline, similar to bitcoin. ETH price broke the $3,180 support level and the 100 hourly simple moving average to move into a short-term bearish zone.

The price even broke the $3,100 level and spiked below the $3,000 level. A low was formed near $2,980 before the price started a decent recovery. It climbed above the $3,050 resistance level and reclaimed the 100 hourly simple moving average.

There was a break above the 23.6% Fib retracement level of the recent decline from the $3,280 high to $2,980 low. However, ether price is now facing a strong resistance near the $3,150 level.

There is also a major bearish trend line forming with resistance near $3,140 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent decline from the $3,280 high to $2,980 low. The main resistance is now forming near the $3,180 level.

Source: ETHUSD on TradingView.com

A clear break and close above the $3,150 and $3,180 resistance levels might start a fresh increase. The next key resistance might be near the $3,250 level, above which the price might rise towards the $3,350 resistance.

Fresh Drop in ETH?

If ethereum fails to continue higher above the $3,150 and $3,180 resistance levels, it could start another decline. An immediate support on the downside is near the $3,080 level.

The first key support is near the $3,020 level. The main support is now forming near $3,000. A downside break below the $3,000 support zone could spark a sharp decline. The next major support could be $2,880.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.

Hourly RSI – The RSI for ETH/USD is back above the 50 level.

Major Support Level – $3,000

Major Resistance Level – $3,180

Source: Read Full Article