Is the Decline Gaining Momentum?

Ethereum price started a fresh decline from the $3,550 resistance. ETH is now showing bearish signs and might slide below the $3,300 level.

• Ethereum started a fresh decline from the $3,550 zone.
• The price is trading below $3,450 and the 100-hourly Simple Moving Average.
• There was a break below a connecting bullish trend line with support at $3,450 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could gain bearish momentum if it settles below the $3,300 level.

Ethereum Price Dips To Support

Ethereum price struggled to continue higher above the $3,550 resistance and started a fresh decline like Bitcoin. ETH traded below the $3,450 and $3,420 support levels.

There was a break below a connecting bullish trend line with support at $3,450 on the hourly chart of ETH/USD. The pair even dipped below the 50% Fib retracement level of the upward wave from the $3,225 swing low to the $3,543 high.

Ethereum price is now trading below $3,450 and the 100-hourly Simple Moving Average. It is now testing the $3,300 support and is above the 76.4% Fib retracement level of the upward wave from the $3,225 swing low to the $3,543 high.

On the upside, the price seems to be facing hurdles near the $3,380 level. The first major resistance is near the $3,420 level. The main resistance is now forming near $3,500. A clear move above the $3,500 resistance might send the price toward the $3,550 resistance.

An upside break above the $3,550 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,650 resistance zone or even $3,720 in the near term.

More Losses In ETH?

If Ethereum fails to clear the $3,420 resistance, it could continue to move down. Initial support on the downside is near the $3,320 level. The first major support sits near the $3,300.

A clear move below the $3,300 support might push the price toward the $3,250 support. Any more losses might send the price toward the $3,220 support level in the near term. The next key support sits at $3,110.

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 – $3,300

Major Resistance Level – $3,420