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TA: Ethereum Near Make-or-Break Levels, Why ETH Could Extend Losses

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Ethereum 12
17
Feb

Ethereum failed to clear the $3,200 resistance against the US Dollar. ETH price is declining and might retest the $2,960 support zone in the near term.

  • Ethereum is struggling to clear the $3,190 and $3,200 resistance levels.
  • The price is now trading above $3,050 and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $3,060 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could extend losses if it fails to stay above the USD 3,050 support.

Ethereum Price Reaches Key Support

Ethereum attempted an upside break above the $3,200 resistance zone. However, ETH failed to gain momentum and formed a short-term top near the $3,196 level.

Ether price corrected gains and traded below the $3,150 support. There was a move below the 23.6% Fib retracement level of the upward move from the $2,833 swing low to $3,196 high. The price even declined below $3,120.

However, it is still trading above $3,050 and the 100 hourly simple moving average. There is also a trading above $3,050 and the 100 hourly simple moving average.

Source: ETHUSD on TradingView.com

An immediate resistance on the upside is near the $3,100 level. The first major resistance is near the $3,150 level. The main resistance is still near the $3,200 level. A successful close above $3,200 might start a steady increase. In the stated case, the price could rise towards $3,250. Any more gains might send the price towards the $3,320 level.

Downside Break in ETH?

If ethereum fails to start a fresh increase above $3,100 or $3,150, it could continue to move down. An initial support on the downside is near the $3,060 level, the 100 hourly simple moving average, and the trend line. The next major support is near the $3,020 level.

The 50% Fib retracement level of the upward move from the $2,833 swing low to $3,196 high is also near the $3,020 zone. A downside break below the trend line support and then $3,020 could start a major decline. The next major support is near the $2,960 level. Any more losses might call for a move towards $2,880.

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 – $3,050

Major Resistance Level – $3,150

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