Ethereum tumbles, indicators show signs of bigger downtrend

ETH/USD continues to fall below the $3,000 support area. ETH price is likely to extend the decline to the $2,650 support in the near term.

  • Ethereum continued to break below the $3,050 and $3,000 support levels.
  • Prices are trading below $3,000 and the 100 hourly simple moving average.
  • There was a break above a key bullish trend line with support near $3,120 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to extend losses if there is a clear break below the $2,800 support area.

Ethereum price drops 8%

Ethereum fails to gain strength above $3,250 and starts dramatically drop.ETH formed a high near $3,272 before falling sharply.

There was a sharp move below the $3,120 and $3,050 support levels. Additionally, there was a break below a key bullish trend line with support near $3,120 on the hourly chart of ETH/USD.Ether price even fell below $3,000, while 100 hourly simple moving average.

The price surged below $2,900 and traded as low as $2,808. It is now consolidating losses above $2,800. Initial resistance is near $2,900. It is near the 23.6% Fib retracement level of the recent decline from the $3,272 swing high to $2,808 low.

The first major resistance is near $3,000 or the 50% Fib retracement level of the recent decline from the $3,272 swing high to $2,808 low.

Source: ETHUSD on TradingView.com

If there is an upward move above the $3,000 resistance zone, the price could rise to the 100 hourly simple moving average. The next major resistance is near $3,200.

ETH to lose more?

If Ethereum fails to initiate a recovery wave above $2,900, it could continue to decline. Initial support on the downside is near $2,820.

The first key support is now forming near $2,800. A break below the $2,800 level could start another strong decline. The next major support for the bulls could be near $2,650. Any more losses could push the price towards the $2,500 level.

Technical indicators

Hourly MACDThe MACD for ETH/USD is gaining pace in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now in oversold territory.

Major Support Level – $2,800

Major Resistance – $3,000

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