Why ETH Could Slide Further

Ethereum Bears Keep Pushing, Why ETH Could Slide Further

Ethereum failed to clear the $3650 resistance against the US Dollar. ETH price is moving lower and it might extend its decline below $3450 in the near term.

  • Ethereum struggled to gain strength above the $3600 and $3620 levels.
  • The price is now trading below $3550 and the 100 hourly simple moving average.
  • There is a key declining channel forming with resistance near $3550 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could slide towards $3350 unless it breaks the $3550 resistance zone.

Ethereum Price Faces Hurdles

Ethereum failed to settle above the $3,600 pivot level. ETH formed a high near $3,620 and started a downside correction. There was a break below the $3,550 support and the 100 hourly simple moving average.

The price even broke the 50% Fib retracement level of the upward move from the $3,375 swing low to $3,620 high. Ether is now trading below the $3,520 level, and it is now consolidating near the $3,500 level. An initial support on the downside is near the $3,480 level.

An immediate resistance on the upside is near the $3,635 level and the 100 hourly SMA. The first major resistance is near the $3,550 level. There is also a key declining channel forming with resistance near $3,550 on the hourly chart of ETH/USD.

Why ETH Could Slide Further
Source: ETHUSD on TradingView.com

The next major resistance is near the $3,560 level, above which the price might start a fresh surge. In the stated case, the price could climb towards the $3,620 level. The next key resistance might be $3,650.

Dips Limited in ETH?

If ethereum fails to continue higher above the $3,550 and $3,560 resistance levels, it could extend its decline. An initial support on the downside is near the $3,480 level. The first key support is now forming near the $3,450 level.

It is near the 61.8% Fib retracement level of the upward move from the $3,375 swing low to $3,620 high. A downside break could lead the price towards the $3,400 support zone in the near term. Any more losses could push ether price towards the $3,375 support zone. The next key support could be $3,300.

Technical Indicators

  • Hourly MACD – The MACD for ETH/USD is gaining pace in the bearish zone.
  • Hourly RSI – The RSI for ETH/USD is now below the 50 level.
  • Major Support Level – $3,440
  • Major Resistance Level – $3,550

Source: News BTC

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