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TA: Ethereum Prints Bearish Technical Pattern, Why It Could Revisit $2.5K

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Ethereum settled below the $3,000 support zone against the US Dollar. ETH price could continue to move down if it stays below the $3,000 pivot level.

  • Ethereum started a downside correction after it failed to stay above the $3,200 level.
  • The price is now trading below $3,000 and the 100 hourly simple moving average.
  • There is a key declining channel forming with resistance near $2,900 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could extend decline if there is a clear move below the $2,800 support zone.

Ethereum Price Remains At Risk

Ethereum failed to stay above the $3,020 and $3,000 support levels. ETH extended decline below the $2,950 support and settles below the 100 hourly simple moving average.

The decline was such that the price traded below the $2,900 level. A low is formed near $2,832 and the price is now consolidating losses. An immediate resistance is near the $2,880 level. The first major resistance is near the $2,950 level.

There is also a key declining channel forming with resistance near $2,900 on the hourly chart of ETH/USD. The channel resistance is near the 23.6% Fib retracement level of the recent decline from the $3,141 swing high to $2,832 low.

Ethereum Price

Source: ETHUSD on TradingView.com

The main resistance is near the $3,000 level and the 100 hourly simple moving average. It coincides with the 50% Fib retracement level of the recent decline from the $3,141 swing high to $2,832 low. A successful close above $3,000 might start another increase. In the stated case, the price could surpass the $3,050 and $3,080 levels. Any more gains might send the price towards the $3,120 level.

More Losses in ETH?

If ethereum fails to start a fresh increase above $2,900 or $3,000, it could continue to move down. An initial support on the downside is near the $2,830 level.

The next major support is near the $2,800 level. A downside break below the $2,800 level might push the price towards the $2,720 level. The next major support is near the $2,650 level, below which there is a risk of a larger decline. In the stated case, the price could test $2,550.

Technical Indicators

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

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

Major Support Level – $2,800

Major Resistance Level – $3,000

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