TA: Ethereum Faces Rejection, Why ETH Could Nosedive Below $3K

Ethereum spiked towards $3,300 but failed to extend gains against the US Dollar. ETH price is correcting gains and there is a risk of a move below $3,030.

• Ethereum started a downside correction after it spiked above the $3,270 level.
• The price is now trading below $3,100 and the 100 hourly simple moving average.
• There was a break below a major bullish trend line with support near $3,140 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must stay above $3,030 and $3,020 to avoid a downside break in the near term.

Ethereum extended increase above the $3,200 level. ETH even climbed above the $3,250 level and the 100 hourly simple moving average. However, the bulls failed to gain strength above $3,250.

A high was formed near $3,283 and the price started a fresh decline. There was a move below the $3,200 and $3,150 support levels. Besides, there was a break below a major bullish trend line with support near $3,140 on the hourly chart of ETH/USD.

The pair settled below $3,100 and the 100 hourly simple moving average. It even spiked below the $3,030 support. A low is formed near $3,005 and the price is now consolidating losses.

An immediate resistance is near the $3,080 level. It is near the 23.6% Fib retracement level of the recent decline from the $3,283 swing high to $3,005 low. The first major resistance is near the $3,120 level and the 100 hourly SMA.

The main resistance is near the $3,150 level. It coincides with the 50% Fib retracement level of the recent decline from the $3,283 swing high to $3,005 low. A successful close above $3,150 might start another increase. In the stated case, the price could surpass the $3,220 and $3,250 levels.

If ethereum fails to start a fresh increase above $3,120 or $3,150, it could continue to move down. An initial support on the downside is near the $3,030 level.

The next major support is near the $3,000 level. A downside break below the $3,000 level might push the price towards the $2,950 level. The next major support is near the $2,800 level, below which there is a risk of a larger decline.

Technical Indicators

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

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

Major Support Level – $3,000

Major Resistance Level – $3,150