Ethereum Slips Below 3K, Why Bears Might Aim $2.5K


Ethereum started another drop from the $3,080 resistance against the US dollar. ETH price traded below the key USD 3,000 support and even dropped below USD 2,920.

Ethereum failed to release $3,080 and started another decline. The price is now trading below $3,000 and the 100 hourly simple moving average. There was a pause below a major bullish channel with support near $3,030 on the ETH/USD hourly chart (data feed via Kraken). The pair may recover, but the positives could be capped near the USD 2,950 level.

Ethereum Price Breaks Key Support

Ethereum attempted a fresh rise above the $3,050 level and the 100 hourly simple moving average. However, ETH failed to gain strength above the $3,080 level.

It peaked near $3,082 and the price started another decline. There was a clear move below the $3,050 support level and the 100 hourly simple moving average. In addition, there was a pause below a major bullish channel with support near $3,030 on the ETH/USD hourly chart.

The pair traded below the $3,000 support zone. More importantly, there was a move below the $2,920 support. A low is forming near $2,896 and ether is now consolidating losses.

On the upside, initial resistance is seen near the $2,940 level. It is near the 23.6% Fib retracement level from the recent drop from the $3,082 swing high to $2,896 low. The next major resistance is near the $2,980 and $3,000 levels.

Ethereum Price Source: ETHUSD on TradingView.com

The 50% Fib retracement level from the recent drop from the $3,082 swing high to $2,896 low is also near the $2,990 level. A close above the $3,000 level and the 100 hourly simple moving average could start a significant recovery wave. The next major resistance could be near $3,050.

Lose more in ETH?

If ethereum does not start a recovery wave above the $3,000 level, it could continue to fall. An initial support on the downside is near the $2,900 zone.

The next major support is near the USD 2,850 level. If there is a downside break below the $2,850 support, the price could trigger another drop. In this scenario, there is a risk of a move towards the USD 2,780 level.

Technical indicators

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

Hourly RSI – The RSI for ETH/USD is now below the 30 level.

Major Support Level – $2,900

Major Resistance Level – $3,000

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