Ethereum Pullback Reaches Support — Will Bulls Step In to Defend Territory?

[Ben Graham]

Ethereum price failed to recover further above $3,650. ETH is trimming gains and might decline further if it dips below the $3,360 support.

• Ethereum started a fresh decline after it failed to stay above $3,620.
• The price is trading below $3,550 and the 100-hourly Simple Moving Average.
• There was a break below a bullish trend line with support at $3,575 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move down if it settles below the $3,360 zone.

Ethereum Price Dips Again

Ethereum price started a recovery wave above $3,400 and $3,550, like Bitcoin. ETH price was able to climb above the $3,600 and $3,620 resistance levels.

However, the bears remained active near the $3,650 zone. A high was formed at $3,658 and the price started a downside correction. There was a move below the $3,550 level. There was a break below a bullish trend line with support at $3,575 on the hourly chart of ETH/USD.

The price tested the 50% Fib retracement level of the upward move from the $3,178 swing low to the $3,658 high. Ethereum price is now trading below $3,550 and the 100-hourly Simple Moving Average.

If there is another recovery wave, the price could face resistance near the $3,500 level. The next key resistance is near the $3,520 level. The first major resistance is near the $3,550 level. A clear move above the $3,550 resistance might send the price toward the $3,650 resistance. An upside break above the $3,650 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $3,800 resistance zone or even $3,880 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $3,550 resistance, it could start a fresh decline. Initial support on the downside is near the $3,420 level. The first major support sits near the $3,360 zone and the 61.8% Fib retracement level of the upward move from the $3,178 swing low to the $3,658 high.

A clear move below the $3,360 support might push the price toward the $3,290 support. Any more losses might send the price toward the $3,220 region in the near term. The next key support sits at $3,175 and $3,150.

Technical Indicators

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

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

Major Support Level – $3,360

Major Resistance Level – $3,550