ETH/USD started a major downtrend from the $2,970 area against the US Dollar. Ether dipped below $2,800 and may accelerate lower below the $2,700 support. Ethereum started a major decline after failing to break above $2,970. The price is now trading below $2,800 and the 100 hourly simple moving average.
There was a break below a key uptrend line with support near $2,900 on the hourly ETH/USD chart. The pair could drop further if there is a close below the $2,700 support zone.
Ethereum price dips
Ethereum struggled to settle above the $2,950 resistance. ETH broke above the $2,970 level and started a fresh decline. There was a sharp move below the $2,900 and $2,850 levels. Additionally, there was a break below a key uptrend line with support near $2,900 on the hourly chart of ETH/USD . Ether price dipped below the $2,800 level and the 100 hourly simple moving average.
Finally, there was a spike below the $2,720 support level. A bottom formed near $2,678 and the price corrected a few points. There was a wave of recovery above the $2,720 level. The price even climbed above the 23.6% Fib retracement level of the recent decline from the $2,969 high to $2,678 low.
On the upside, an initial resistance is seen near the $2,760 level. The first major resistance is near the $2,820 level. It is near the 50% Fib retracement level of the recent swing decline from the $2,969 swing low to $2,678 low. The main breakout zone is now near the $2,875 level. A close above the $2,875 level could open the doors for a decent rise, and if indicated, Ether price could rise towards the $3,000 resistance.
More losses in ETH?
If Ethereum fails to gain a momentum above the $2,760 resistance, it could continue to decline. Initial support on the downside is near the $2,720 area. The next major support is near the $2,680 level. If a decline falls below $2,680 and the recent low, Ether price could accelerate lower. In this case, it might even drop below the $2,600 level. Good luck