Ethereum failed to clear the $3,650 resistance against the US Dollar. ETH price is moving lower and it might extend its decline below $3,450 in the near term.
Ethereum struggled to gain strength above the $3,600 and $3,620 levels.
The price is now trading below $3,550 and the 100 hourly simple moving average.
There is a key declining channel forming with resistance near $3,550 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could slide towards $3,350 unless it breaks the $3,550 resistance zone.
Ethereum Price Faces Hurdles
Ethereum failed to settle above the $3,600 pivot level. ETH formed a high near $3,620 and started a downside correction. There was a break below the $3,550 support and the 100 hourly simple moving average.
The price even broke the 50% Fib retracement level of the upward move from the $3,375 swing low to $3,620 high. Ether is now trading below the $3,520 level, and it is now consolidating near the $3,500 level. An initial support on the downside is near the $3,480 level.
An immediate resistance on the upside is near the $3,635 level and the 100 hourly SMA. The first major resistance is near the $3,550 level. There is also a key declining channel forming with resistance near $3,550 on the hourly chart of ETH/USD.
The next major resistance is near the $3,560 level, above which the price might start a fresh surge. In the stated case, the price could climb towards the $3,620 level. The next key resistance might be $3,650.
Dips Limited in ETH?
If ethereum fails to continue higher above the $3,550 and $3,560 resistance levels, it could extend its decline. An initial support on the downside is near the $3,480 level. The first key support is now forming near the $3,450 level.
It is near the 61.8% Fib retracement level of the upward move from the $3,375 swing low to $3,620 high. A downside break could lead the price towards the $3,400 support zone in the near term. Any more losses could push ether price towards the $3,375 support zone. The next key support could be $3,300.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,440
Major Resistance Level – $3,550
