Ethereum Takes a Blow, Though Buyers Continue Shielding Key Price Floors

[Ben Graham]

Ethereum price started a fresh decline below $2,880. ETH is now attempting to recover from $2,720 but the bulls might face resistance.

• Ethereum started a fresh decline below $2,880 and $2,800.
• The price is trading below $2,850 and the 100-hourly Simple Moving Average.
• There is a short-term bearish trend line forming with resistance at $2,820 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move up if it settles above the $2,850 zone.

Ethereum Price Attempts Recovery

Ethereum price failed to stay above $2,950 and started a fresh decline, like Bitcoin. ETH price declined below $2,880 to enter a bearish zone. The bears even pushed the price below $2,800.

A low was formed at $2,718 and the price is now attempting to recover. There was a move above the $2,750 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $3,052 swing high to the $2,718 low.

Ethereum price is now trading below $2,850 and the 100-hourly Simple Moving Average. If there is another upward move, the price could face resistance near the $2,820 level. There is also a short-term bearish trend line forming with resistance at $2,820 on the hourly chart of ETH/USD.

The next key resistance is near the $2,880 level or the 50% Fib retracement level of the downward move from the $3,052 swing high to the $2,718 low. The first major resistance is near the $2,920 level. A clear move above the $2,920 resistance might send the price toward the $3,000 resistance. An upside break above the $3,000 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $3,050 resistance zone or even $3,150 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $2,880 resistance, it could start a fresh decline. Initial support on the downside is near the $2,760 level. The first major support sits near the $2,740 zone.

A clear move below the $2,740 support might push the price toward the $2,720 support. Any more losses might send the price toward the $2,650 region in the near term. The next key support sits at $2,550 and $2,500.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,720

Major Resistance Level – $2,880