Ethereum Bears Emerge: Is a Deeper Pullback Coming?

Ethereum price is struggling below the $3,400 resistance. ETH is showing a few bearish signs and might decline below the $3,150 support.

• Ethereum failed to gain pace for a close above $3,350 and $3,400.
• The price is trading below $3,300 and the 100-hourly Simple Moving Average.
• There was a break below a key contracting triangle with support at $3,270 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start another increase if it stays above the $3,120 support level.

Ethereum price started a decent upward move from the $3,220 level but upsides were limited compared to Bitcoin. ETH cleared the $3,300 resistance before the bears appeared.

A high was formed at $3,361 and the price is now moving lower. There was a move below the $3,250 and $3,220 support levels. Besides, there was a break below a key contracting triangle with support at $3,270 on the hourly chart of ETH/USD.

A low was formed at $3,201 and the price is now consolidating. Ethereum price is now trading below $3,300 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,280 level or the 50% Fib retracement level of the downward move from the $3,363 swing high to the $3,201 low.

The first major resistance is near the $3,300 level or the 61.8% Fib retracement level of the downward move from the $3,363 swing high to the $3,201 low. The main resistance is now forming near $3,350.

A clear move above the $3,350 resistance might send the price toward the $3,450 resistance. An upside break above the $3,450 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,550 resistance zone or even $3,580 in the near term.

If Ethereum fails to clear the $3,300 resistance, it could start another decline. Initial support on the downside is near the $3,200 level. The first major support sits near the $3,150.

A clear move below the $3,150 support might push the price toward the $3,120 support. Any more losses might send the price toward the $3,050 support level in the near term. The next key support sits at $3,000.

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 – $3,200

Major Resistance Level – $3,300