Ethereum Prints Bearish Technical Pattern, Why ETH Could Resume Downtrend
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Ethereum Prints Bearish Technical Pattern, Why ETH Could Resume Downtrend
Ethereum Price Resumes Decline
Ethereum attempted an upside break above the $2,900 resistance. However, ETH struggled to clear the $2,880 level and started a fresh decline.There was a break below the $2,850 and $2,820 support levels. The price declined sharply below the 50% Fib retracement level of the upward move from the $2,718 swing low to $2,881 high. There was also a break below a key rising channel with support near $2,820 on the hourly chart of ETH/USD.Ether price is now trading below $2,820 and the 100 hourly simple moving average. It also tested the 76.4% Fib retracement level of the upward move from the $2,718 swing low to $2,881 high.
The price is now consolidating near the $2,790 level. On the upside, an initial resistance is seen near the $2,800 level and a connecting bearish trend line on the same chart. The next major resistance is near the $2,820 level and the 100 hourly simple moving average.
More Losses in ETH?
If ethereum fails to gain pace above the $2,820 resistance, it could continue to move down. An initial support on the downside is near the $2,750 zone.The next major support is near the $2,720 level. If there is a downside break below the $2,220 support, the price could gain bearish momentum. In the stated case, there is a risk of a move towards the $2,600 level.