Ethereum Price Downward Drift: Decline Resumes Again

Ethereum price failed to clear the $3,720 resistance. ETH declined again and is now at risk of more losses below the $3,550 support zone.

• Ethereum started a fresh decline from the $3,720 resistance zone.
• The price is trading below $3,650 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance near $3,680 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could extend losses if there is a close below the $3,550 support.

Ethereum price attempted a decent increase above the $3,650 resistance zone. ETH even spiked above $3,700 but the bears were active. A high was formed at $3,710 and the price started a fresh decline. There was a sharp decline below the $3,660 and $3,650 levels.

A low was formed near $3,565 and the price is now consolidating losses, like Bitcoin. Ethereum is now trading below $3,650 and the 100-hourly Simple Moving Average.

If there is a fresh increase or a recovery wave, the price might face resistance near the 23.6% Fib retracement level of the downward move from the $3,710 swing high to the $3,565 low. The first major resistance is near the $3,640 level.

There is also a key bearish trend line forming with resistance near $3,680 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the downward move from the $3,710 swing high to the $3,565 low.

An upside break above the $3,680 resistance might send the price higher. The next key resistance sits at $3,720, above which the price might gain traction and rise toward the $3,750 level. If the bulls push Ether above the $3,750 level, the price might rise and test the $3,800 resistance. Any more gains could send Ether toward the $3,880 resistance zone.

If Ethereum fails to clear the $3,650 resistance, it could continue to move down. Initial support on the downside is near $3,550. The next major support is near the $3,520 zone.

The main support sits at $3,500. A clear move below the $3,500 support might push the price toward $3,320. Any more losses might send the price toward the $3,250 level in the near term.

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 – $3,550

Major Resistance Level – $3,650