TA: Ethereum Prints Bearish Technical Pattern, Why ETH Could Resume Downtrend

TA: Ethereum Prints Bearish Technical Pattern, Why ETH Could Resume Downtrend

Ethereum broke the $2,820 support to enter a bearish zone against the US Dollar. ETH remains at a risk of more downsides below the $2,740 level.

  • Ethereum started a fresh decline after it failed to clear the $2,880 zone.
  • The price is now trading below $2,820 and the 100 hourly simple moving average.
  • There was a break below a key rising channel with support near $2,820 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must clear the $2,800 and $2,820 resistance levels to start a recovery wave.

Ethereum Price Resumes Decline

Ethereum attempted an upside break above the $2,900 resistance. However, ETH struggled to clear the $2,880 level and started a fresh decline.

There was a break below the $2,850 and $2,820 support levels. The price declined sharply below the 50% Fib retracement level of the upward move from the $2,718 swing low to $2,881 high. There was also a break below a key rising channel with support near $2,820 on the hourly chart of ETH/USD.

Ether price is now trading below $2,820 and the 100 hourly simple moving average. It also tested the 76.4% Fib retracement level of the upward move from the $2,718 swing low to $2,881 high.

The price is now consolidating near the $2,790 level. On the upside, an initial resistance is seen near the $2,800 level and a connecting bearish trend line on the same chart. The next major resistance is near the $2,820 level and the 100 hourly simple moving average.

Source: ETHUSD on TradingView.com

A clear move above the $2,820 resistance might start a steady upward move. In the stated case, ether price might rise towards the $2,880 resistance. Any more gains may perhaps open the doors for a move above $2,920.

More Losses in ETH?

If ethereum fails to gain pace above the $2,820 resistance, it could continue to move down. An initial support on the downside is near the $2,750 zone.

The next major support is near the $2,720 level. If there is a downside break below the $2,220 support, the price could gain bearish momentum. In the stated case, there is a risk of a move towards the $2,600 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing pace in the bearish zone.

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

Major Support Level – $2,720

Major Resistance Level – $2,820

Did you like this?
Tip Bitcoin Tradeboard with Cryptocurrency

Donate Bitcoin to Bitcoin Tradeboard

Scan to Donate Bitcoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate Bitcoin Cash to Bitcoin Tradeboard

Scan to Donate Bitcoin Cash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate Ethereum to Bitcoin Tradeboard

Scan to Donate Ethereum to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Ether:

Donate Litecoin to Bitcoin Tradeboard

Scan to Donate Litecoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate Monero to Bitcoin Tradeboard

Scan to Donate Monero to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Monero:

Donate ZCash to Bitcoin Tradeboard

Scan to Donate ZCash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some ZCash: