TA: Ethereum At Clear Risk of More Losses Below $2,800

Ethereum started a sharp decline from $3,000 against the US Dollar. ETH is struggling below $2,900 and might slide below the $2,800 level in the near term.

• Ethereum started a major decline after there was a clear move below $3,000.
• The price is now trading above $2,900 and the 100 hourly simple moving average.
• There is a key bearish trend line forming with resistance near $2,935 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must stay above the $2,840 support to avoid more downsides in the near term.

Ethereum attempted a clear move above the $3,000 resistance zone. However, ETH failed to gain strength above the $3,000 level and formed a short-term top near $2,980.

A high was formed at $2,967 and the price started a sharp decline. There was a clear move below the $2,950 support zone and the 100 hourly simple moving average. The bears were able to push the price below the $2,900 level.

A low was formed near $2,840 and the price is now consolidating losses. Ether is now trading above the 23.6% Fib retracement level of the recent decline from the $2,967 swing high to $2,840 low.

On the upside, an initial resistance is seen near the $2,900 level. It is near the 50% Fib retracement level of the recent decline from the $2,967 swing high to $2,840 low.  The next major resistance is near the $2,930 level. There is also a key bearish trend line forming with resistance near $2,935 on the hourly chart of ETH/USD.

The main resistance now sits near $3,000 and the 100 hourly simple moving average. A close above the $3,000 level might start a fresh rise in the near term. In the stated case, ether might climb towards the $3,050 level.

If ethereum fails to gain pace above the $2,930 level, it could continue to move down. An initial support on the downside is near the $2,850 zone.

The first major support is near the $2,840 level. If there is a downside break below the $2,840 support, the price could accelerate lower. The next key support is near the $2,750 zone.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $2,840

Major Resistance Level – $2,930