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Ethereum price extended losses and dropped below the $3,550 area. ETH is showing bearish signs and may fall further below the $3,150 level.
- Ethereum started a new low below the $3,550 area.
- The price is trading below $3,500 and the 100-hour Simple Moving Average.
- There is an important bearish line running through resistance at $3,420 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to decline if it fails to stay above the $3,550 support area.
Ethereum Price Drops Below $3,550
Ethereum price struggled to start a new rally above the $3,550 level and extended losses similar to Bitcoin. ETH found bearish momentum below the $3,450 level and traded below $3,300.
It even sank below $3,220 and rose below the $3,120 level. A low was formed at $3,100 and the price is now covering losses. There was a close below the 50% Fib retracement level of the recovery wave from the $3,100 swing low to the $3,553 high.
Ethereum price is now trading below $3,500 and the 100-hour Simple Moving Average. There is also a key bearish line forming with resistance at $3,420 on the hourly chart of ETH/USD.
The pair is now testing the 76.4% Fib retracement level of the recovery wave from the $3,100 swing low to the $3,553 high. On the other hand, the price seems to be facing obstacles near the $3,350 level. The first major resistance is near the $3,400 level.
The main resistance is now around $3,420. A clear move above the $3,420 resistance could send the price to the $3,500 resistance. Breaks above $3,500 may require additional gains in future sessions. In the mentioned case, Ether can rise to the resistance area of ​​$3,550 or even $3,650.
More Loss on ETH?
If Ethereum fails to clear the $3,420 resistance, it could continue to decline. The first support on the downside is near the $3,200 level. The first major support sits near the $3,120 area.
A clear move below the $3,120 support could push the price to the $3,050 support. Another loss could send the price to the $3,000 support level in the near term. The next key support remains at $2,880.
Technical References
MACD per hour – MACD of ETH/USD is trending in bearish territory.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Major Support Level – $3,120
Major Resistance Level – $3,420
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