Ethereum Dives Below $2,880 as Bears Tighten Their Grip on the Trend

Ben Graham · Dezembro 1

Ethereum price started a fresh decline below $2,950. ETH is down over 5%, trading below $2,880, and might continue to move down.

Ethereum started a fresh decline below $2,950 and $2,900.
The price is trading below $2,880 and the 100-hourly Simple Moving Average.
There was a break below a key bullish trend line with support at $2,990 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to move down if it settles below the $2,800 zone.

Ethereum Price Dips Over 5%

Ethereum price failed to stay above $3,000 and started a fresh decline, like Bitcoin. ETH price declined below $2,880 to enter a bearish zone.

There was a break below a key bullish trend line with support at $2,990 on the hourly chart of ETH/USD. The bears even pushed the price below $2,850. A low was formed at $2,815 and the price is showing bearish signs below the 23.6% Fib retracement level of the downward move from the $3,052 swing high to the $2,815 low.

Ethereum price is now trading below $2,900 and the 100-hourly Simple Moving Average. If there is another upward move, the price could face resistance near the $2,880 level.

The next key resistance is near the $2,940 level or the 50% Fib retracement level of the downward move from the $3,052 swing high to the $2,815 low. The first major resistance is near the $2,960 level. A clear move above the $2,960 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.

More Losses In ETH?

If Ethereum fails to clear the $2,960 resistance, it could start a fresh decline. Initial support on the downside is near the $2,820 level. The first major support sits near the $2,800 zone.

A clear move below the $2,800 support might push the price toward the $2,740 support. Any more losses might send the price toward the $2,720 region in the near term. The next key support sits at $2,650 and $2,620.

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 – $2,800

Major Resistance Level – $2,940