Recently, Ethereum price has started a major decline from the $3,500 resistance zone. The cryptocurrency is down over 8% and there is a possibility that it might continue to decline toward the $3,120 support level.
Ethereum is gaining bearish pace from the $3,500 resistance zone. The price is currently trading below $3,400 and the 100-hourly Simple Moving Average. There was a break below a key declining channel with support at $3,380 on the hourly chart of ETH/USD. This indicates a strong downward momentum for Ethereum.
ETH failed to start a fresh increase above the $3,500 resistance zone and started a fresh decline, trading below the $3,400 support zone. It declined by over 8% more than Bitcoin, reaching levels below $3,200 and testing $3,180. A low is formed near $3,183 indicating further potential losses for Ethereum.
If there is a recovery wave, the price could face resistance near the 23.6% Fib retracement level of the downward move from the $3,500 swing high to the $3,183 low at $3,250. The first major resistance is near the $3,300 level, followed by the $3,350 level and the 50% Fib retracement level. An upside break above the $3,425 resistance might send the price higher toward the $3,500 resistance zone.
However, if Ethereum fails to clear the $3,250 resistance, it could continue to move down. Initial support on the downside is near $3,180, with the first major support sitting near the $3,120 zone. A clear move below the $3,150 support might push the price toward $3,080, with further losses potentially leading the price to the $3,020 support level in the near term. The next key support sits at $2,950.
The hourly MACD for ETH/USD is gaining momentum in the bearish zone, indicating a strong bearish trend. The hourly RSI for ETH/USD is now below the 50 zone, further confirming the bearish sentiment in the market.
Ethereum price is currently facing a major decline and is struggling to find support levels. The bearish momentum is strong, and unless there is a significant recovery, the price of Ethereum might continue to decline further in the coming days.
