Why Ethereum Remains At Risk of A Fresh Drop To $3K
Ethereum is struggling to climb above $3,500 against the US Dollar. ETH price is moving lower and it could decline further below the $3,200 support zone.
Ethereum attempted a recovery wave above the $3,400 level. However, ETH struggled to clear the $3,450 resistance and it even failed to stay above the 100 hourly simple moving average.
A high was formed near $3,450 and the price started a fresh decline, similar to bitcoin. There was a break below the $3,350 and $3,320 support levels. Ether traded below the 50% Fib retracement level of the upward move from the $3,148 swing low to $3,450 high.
It is now trading well below $3,400 and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $3,400 on the hourly chart of ETH/USD.
An immediate resistance on the upside is near the $3,320 level. The first major resistance is near the $3,380 level. A proper move above the $3,380 level and $3,400 could increase the chances of a steady increase. The next major resistance sits near $3,500.
If ethereum fails to continue higher above the $3,350 and $3,400 resistance levels, it could start another downward move. An immediate support on the downside is near the $3,220 level.
The 76.4% Fib retracement level of the upward move from the $3,148 swing low to $3,450 high is also near $3,220. A downside break below the $3,220 and $3,200 support levels might push the price further lower. The next major support is now forming near the $3,150 zone, below which ether price might revisit $3,000.