Ethereum Hit, Why ETH Could Drop Below $2,700
Ethereum started a big decline from the $2,970 zone against the US dollar. ETH dipped below $2,800 and it could accelerate below the $2,700 support.
Ethereum started a big decline after failing to cross $2,970. The price is now trading below $2,800 and the 100 hourly simple moving average. There was a break below a key bullish trendline with support near USD 2,900 on the ETH/USD hourly chart (data feed via Kraken). The pair could fall further if it closes below the USD 2,700 support zone.
Ethereum price diving
Ethereum struggled to break above the USD 2,950 resistance. ETH peaked near the $2,970 level and started another decline. There was a sharp move below the $2,900 and $2,850 levels.
In addition, there was a break below a key bullish trendline with support near USD 2,900 on the ETH/USD hourly chart. Ether price fell below the $2,800 level and the 100 hourly simple moving average. Finally, there was a spike below the $2,720 support level.
A low was formed near $2,678 and the price corrected a few points. There was a surge of recovery above the $2,720 level. The price even climbed above the 23.6% Fib retracement level from the recent drop from the $2,969 swing high to $2,678 low.
On the upside, initial resistance is seen near the USD 2,760 level. The first major resistance is near the USD 2,820 level. It is near the 50% Fib retracement level from the recent drop from the swing high from $2,969 to $2,678 low. The main breakout zone is now near the $2,875 level.
Source: ETHUSD on TradingView.com
A close above the USD 2,875 level could open the doors for some decent gains. In the mentioned case, ether price could climb towards the USD 3,000 resistance.
Lose more in ETH?
If ethereum fails to gain pace above the $2,760 resistance, it could continue to fall. An initial support on the downside is near the $2,720 zone.
The next major support is near the USD 2,680 level. If there is a downward breach below USD 2,680 and the recent low, ether price may accelerate downward. In this case, it could even fall below the USD 2,600 level.
Hourly MACD – The MACD for ETH/USD is now moving in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $2680
Major Resistance Level – $2,760