TA: Ethereum (ETH) Faces Rejection, Why ETH Could Revisit $3K

TA: Ethereum (ETH) Faces Rejection, Why ETH Could Revisit $3K

Ethereum failed once again to clear the $3,330 resistance against the US Dollar. ETH price is now at a risk of more losses below the $3,120 support zone.

• Ethereum failed on two occasions to clear the $3,330 resistance zone.
• The price is now trading below $3,200 and the 100 hourly simple moving average.
• There was a break below a key bullish trend line with support near $3,200 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move down as long as it is below the $3,250 resistance.

Ethereum made another to clear the $3,330 resistance, similar to bitcoin at $48k. However, ETH price failed to gain strength and struggled to clear the $3,330 resistance zone.

A high was formed near $3,336 and the price started a fresh decline. There was a break below the $3,250 support level. There was also a break below a key bullish trend line with support near $3,200 on the hourly chart of ETH/USD.

Ether price settled below $3,200 and the 100 hourly simple moving average. The price retested the $3,120 support zone, where the bulls took a stand. A low is formed near $3,120 and the price is now attempting an upside correction.

There was a break above the $3,150 level. The price recovered above the 23.6% Fib retracement level of the recent decline from the $3,336 high to $3,120 low.

On the upside, an initial resistance is near the $3,200 level and the 100 hourly simple moving average. The key resistance is now forming near the $3,240 level. It is near the 50% Fib retracement level of the recent decline from the $3,336 high to $3,120 low.

A clear break and close above the $3,240 and $3,250 resistance levels might start a fresh increase. The next key resistance might be near the $3,300 level, above which the price might attempt break above $3,330.

If ethereum fails to continue higher above the $3,240 and $3,250 resistance levels, it could extend its downside correction. An immediate support on the downside is near the $3,140 level.

The first key support is near the $3,120 level. A downside break below the $3,120 support zone could spark a sharp decline. The next major support could be $3,000.

Technical Indicators

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

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

Major Support Level – $3,120

Major Resistance Level – $3,250