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TA: Ethereum Drops Below $2,800, Why The Bulls Might Struggle

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Ethereum extended decline below the $2,800 support zone against the US Dollar. ETH price is declining and might even trade below the $2,675 support zone.

  • Ethereum started a downside correction below the $2,880 support zone.
  • The price is now trading below $2,800 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $2,800 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could extend decline towards the $2,550 support if it breaks the $2,675 support.

Ethereum Price Extends Decline

Ethereum failed to start a fresh increase above the $2,950 resistance level. ETH started another decline and traded below the key $2,880 support zone.

There was a clear move below the 50% Fib retracement level of the key increase from the $2,560 swing low to $3,043 high. Ether price even settled below the $2,800 support zone and the 100 hourly simple moving average.

It is now trading below the 61.8% Fib retracement level of the key increase from the $2,560 swing low to $3,043 high. There is also a key bearish trend line forming with resistance near $2,800 on the hourly chart of ETH/USD. On the upside, ether price is facing resistance near the $2,760 level.

Ethereum Price

Source: ETHUSD on TradingView.com

The first major resistance is seen near the $2,800 level (the recent breakdown zone) and the trend line zone. A clear move above the $2,800 level might open the doors for a steady increase. The next major resistance might be near the $2,850 level and the 100 hourly simple moving average. Any more gains could send the price towards the $3,000 resistance zone or even the $3,040 level.

More Downsides in ETH?

If ethereum fails to start a fresh increase above the $2,800 level, it could extend decline. An initial support on the downside is near the $2,700 level.

The next major support is near the $2,675 level, below which the price might gain bearish momentum. In the stated case, ether price could even revisit the $2,550 support zone. Any more losses might call for a move towards the $2,500 level in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining pace in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 30 level.

Major Support Level – $2,675

Major Resistance Level – $2,800

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