TA: Ethereum Takes Hit: Main Reasons $3K Could Be Tested

Ethereum started a fresh decline after it faced rejection near $3,300 against the US Dollar. ETH price could extend decline towards $3,000 in the near term.

• Ethereum started a fresh decline after it faced rejection near $3,280 and $3,300.
• The price is now trading below $3,220 and the 100 hourly simple moving average.
• There is a major bearish trend line forming with resistance near $3,320 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could extend decline to $3,000 if it trades below the $3,150 support.

Ethereum attempted an upside correction above the $3,220 level. ETH even moved above the $3,250 level, but the bears appeared near the $3,300 level.

A high was formed near $3,307 and the price started a fresh decline. There was a clear move below the $3,250 and $3,220 support levels. Ether even traded below a connecting bullish trend line with support near $3,220 on the hourly chart.

It is now trading below $3,200 and the 100 hourly simple moving average. A low is formed near $3,154 and the price is now consolidating losses.

On the upside, an initial resistance is seen near the $3,190 level. It is near the 23.6% Fib retracement level of the recent decline from the $3,307 swing high to $3,154 low. The next major resistance is near the $3,235 level.

The 50% Fib retracement level of the recent decline from the $3,307 swing high to $3,154 low is also near $3,235. The main resistance is near the $3,260 level and the 100 hourly simple moving average. Besides, there is a major bearish trend line forming with resistance near $3,320 on the hourly chart of ETH/USD.

A clear move above the $3,260 resistance and then the trend line might start a steady increase. In the stated case, the price could climb above the $3,300 zone.

If ethereum fails to start a fresh increase above the $3,260 level, it could continue to move down. An initial support on the downside is near the $3,150 zone.

The next major support is near the $3,120 level. If there is a downside break below the $3,120 support, the price could resume its decline. In the stated case, the price may even decline to $3,000.

Technical Indicators

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

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

Major Support Level – $3,150

Major Resistance Level – $3,260