Ethereum Price Takes Hit and Turns At Risk of Fresh Lows

Ethereum price is gaining bearish momentum below $2,950. ETH might continue to move down toward the $2,550 support in the near term.

• Ethereum struggled to clear the $2,950 resistance and started a fresh decline.
• The price is trading below $2,920 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $2,910 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could gain bearish momentum if there is a move below the $2,850 support.

Ethereum price failed to continue higher above the $2,950 resistance, like Bitcoin. A high was formed at $2,951 and the price started a fresh decline. There was a steady decline below the $2,920 and $2,900 levels.

A low has formed at $2,864 and the price is now consolidating losses. It is trading near the 23.6% Fib retracement level of the downward move from the $2,951 swing high to the $2,864 low. Ethereum is now trading below $2,950 and the 100-hourly Simple Moving Average.

Immediate resistance is near the $2,900 level. The first major resistance is near the $2,920 level or the 50% Fib retracement level of the downward move from the $2,951 swing high to the $2,864 low.

There is also a key bearish trend line forming with resistance at $2,910 on the hourly chart of ETH/USD. The next key resistance sits at $2,950 and 100-hourly Simple Moving Average, above which the price might gain traction and rise toward the $3,020 level.

Source: ETHUSD on TradingView.com

If there is a clear move above the $3,020 level, the price might rise and test the $3,150 resistance. Any more gains could send Ether toward the $3,250 resistance zone.

If Ethereum fails to clear the $2,920 resistance, it could start another decline. Initial support on the downside is near the $2,865 level. The first major support is near the $2,840 zone.

The next support is near the $2,780 level. A clear move below the $2,780 support might push the price toward $2,650. Any more losses might send the price toward the $2,550 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 level.

Major Support Level – $2,865

Major Resistance Level – $2,920