Ethereum started a sharp drop below $ 3,500 against the US dollar. ETH price tested $ 3,000 and is now trying a strong recovery wave.
- Ethereum began a sharp drop from well above the $ 3,800 mark.
- The price is now trading well below $ 3,600 and the 100-hour simple moving average.
- A major contracting triangle is forming on the hourly chart of ETH / USD (data feed on Kraken) with support near USD 3,400.
- The pair could trade in a range and could face strong resistance near $ 3,600.
Ethereum price corrects losses
Ethereum started a sharp decline after failing to hit $ 4,000. ETH fell sharply below the $ 3,800 and $ 3,700 levels. It even broke the USD 3,600 support level and, similar to Bitcoin, settled well below the simple 100-hour moving average.
The bears even pushed the price below $ 3,500 and $ 3,200. Eventually there was a spike below $ 3,000 and the price tested the $ 2,900 zone. A low is forming at $ 2,900 and Ether recently started a strong upward move.
It broke the $ 3,200 and $ 3,350 resistance levels. There was also a break above the 50% Fib retracement level of the move down from the $ 3,969 swing high to the $ 2,900 swing low. The price is now consolidating near the $ 3,450 level.
A major contracting triangle is also forming on the hourly chart of ETH / USD with support near USD 3,400. Immediate resistance to the upside is near the $ 3,500 mark.
Source: ETHUSD on TradingView.com
The first major resistance is near the $ 3,560 mark. It is near the 61.8% Fib retracement level of the downward move from the $ 3,969 swing high to the $ 2,900 swing low. A proper move above the $ 3,560 and $ 3,600 levels could set the pace for a bigger move higher.
More losses in ETH?
If Ethereum fails to break above the $ 3,560 and $ 3,600 resistance levels, it could trigger another downward move. Immediate support on the downside is near the $ 3,400 mark.
The next big support is now forming near the $ 3,320 zone. A break below the USD 3,320 support zone could push the price further down. In that case, the price is likely to drop towards the $ 3,000 mark in the short term.
Hourly MACD – The MACD for ETH / USD is slowly gaining momentum in the upward zone.
Hourly RSI – The RSI for ETH / USD is now moving higher towards 50.
Large support tier – $ 3,320
Great resistance level – $ 3,560