Ethereum price is gaining bearish momentum below $2,950. ETH might continue to move down toward the $2,550 support in the near term.
- Ethereum struggled to clear the $2,950 resistance and started a fresh decline.
- The price is trading below $2,920 and the 100-hourly Simple Moving Average.
- There is a key bearish trend line forming with resistance at $2,910 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bearish momentum if there is a move below the $2,850 support.
Ethereum Price Extends Losses
Ethereum price failed to continue higher above the $2,950 resistance, like Bitcoin. A high was formed at $2,951 and the price started a fresh decline. There was a steady decline below the $2,920 and $2,900 levels.
A low has formed at $2,864 and the price is now consolidating losses. It is trading near the 23.6% Fib retracement level of the downward move from the $2,951 swing high to the $2,864 low. Ethereum is now trading below $2,950 and the 100-hourly Simple Moving Average.
Immediate resistance is near the $2,900 level. The first major resistance is near the $2,920 level or the 50% Fib retracement level of the downward move from the $2,951 swing high to the $2,864 low.
There is also a key bearish trend line forming with resistance at $2,910 on the hourly chart of ETH/USD. The next key resistance sits at $2,950 and 100-hourly Simple Moving Average, above which the price might gain traction and rise toward the $3,020 level.
Source: ETHUSD on TradingView.com
If there is a clear move above the $3,020 level, the price might rise and test the $3,150 resistance. Any more gains could send Ether toward the $3,250 resistance zone.
More Losses In ETH?
If Ethereum fails to clear the $2,920 resistance, it could start another decline. Initial support on the downside is near the $2,865 level. The first major support is near the $2,840 zone.
The next support is near the $2,780 level. A clear move below the $2,780 support might push the price toward $2,650. Any more losses might send the price toward the $2,550 level in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $2,865
Major Resistance Level – $2,920
Aayush Jindal
Aayush is a Senior Forex, Cryptocurrencies, and Financial Market Strategist. He specializes in market strategies and technical analysis and has spent over 15 years as a financial markets contributor and observer. He also founded an IT company and works rigorously in providing high-quality software services. Aayush possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin, and Ethereum markets. Follow him on Twitter @AayushJs.
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