Ethereum Price Drops Below $3,650
Ethereum price struggled to initiate a new rally as it failed to break above the $3,680 level and continued its downtrend similar to Bitcoin.
ETH lost momentum and fell below $3,650, then continued to decline below $3,600.
The price even dropped sharply below $3,550 and hit a low of nearly $3,420. The bottom was set at $3,324 and the price is currently in a consolidation phase after the decline.
On the hourly chart of the ETH/USD pair, a major bearish trend line is forming with a key resistance at $3,650.
Currently, Ethereum is trading below $3,550 and below the 100 hourly simple moving average.
On the upside, ETH is facing resistance near $3,510, which is close to the 23.6% Fibonacci retracement level of the decline from the $4,105 high to $3,324 low.
The first major resistance is near the $3,650 level, which coincides with the main bearish trend line on the hourly chart of ETH/USD.
See also: Ethereum set to follow XRP's lead and surge 390% to $7.6K?
Source: TradingView
The main resistance is now forming near $3,715 or the 50% Fibonacci retracement level of the decline from the $4,105 high to $3,324 low.
A clear move above the $3,715 resistance could push the price towards the $3,800 resistance zone.
If the price breaks above the $3,800 resistance level, this could pave the way for fresh upside momentum in the coming sessions.
In this case, Ether could climb to the $3,880 resistance zone, even reaching $4,000.
Can the downtrend continue?
If Ethereum fails to clear the $3,650 resistance, the price could continue to decline. Initial support for the downside lies near the $3,350 level. The first key support is currently around the $3,320 region.
If the price clearly declines below the $3,320 support level, selling pressure could drag the price towards the $3,250 support zone.
Further declines could take the price closer to the $3,150 support level in the short term. The next important support level is at $3,050.
Technical indicators
MACD Hourly – The MACD indicator for the ETH/USD pair is gaining momentum in the bearish zone.
RSI Hourly – The RSI indicator for the ETH/USD pair is currently below the 50 level.
Important support level – $3,320.
Important resistance level – $3,650.
