Ethereum Shrinks Profits, $3,200 Is Key


Ethereum started another decline from the $3,450 resistance against the US dollar. ETH price needs to stay above $3,200 to start another upward move.

Ethereum started another decline from the $3,480 and $3,450 resistance levels. The price is now trading below $3,300 and the 100 hourly simple moving average. There was a break below a key bullish trendline with support near $3,300 on the ETH/USD hourly chart (data feed via Kraken). The pair could start another rise if it manages to stay above the $3,200 support zone.

Ethereum price remains supported

Ethereum failed to gain bullish momentum above the $3,450 resistance zone. ETH peaked near $3,446 and the price started another decline.

There was movement below the $3,350 support zone and the 100 hourly simple moving average. In addition, there was a break below a key bullish trendline with support near USD 3,300 on the ETH/USD hourly chart. Ether price is now trading below $3,300 and the 100 hourly simple moving average.

It even went below the $3,250 level and hit a low near $3,215. The price is now consolidating gains above the $3,200 level.

An immediate resistance is near the $3,270 level. It is near the Fib retracement level of 23.6% from its recent drop from the $3,446 high to $3,215 low. The next major resistance is near the $3,300 level. Ether price needs to clear the $3,300 resistance to start a new wave.

Source: ETHUSD on TradingView.com

In the case mentioned, the price could even surpass $3,350 or the 50% Fib retracement level from its recent drop from the $3,446 high to $3,215 low. The next big stop for the bulls on the upside could be USD 3,450.

Lose more in ETH?

If ethereum fails to start a fresh rise above the $3,300 level, it could continue to fall. An initial support on the downside is near the $3,240 zone.

The next major support is near the $3,220 level. The main support is near the $3,200 zone. A downward breach below the $3,200 support zone could lead to a sharp decline. In the mentioned case, there is a risk of a move towards the USD 3,050 level.

Technical indicators

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

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

Major Support Level – $3,200

Major Resistance Level – $3,350

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