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    Ethereum Tanks 10% — Can Bulls Defend the Next Major Demand Zone?


    Ethereum price started a fresh decline below $3,550. ETH is struggling below $3,400 and might decline further if it stays below $3,500.

    • Ethereum started another bearish wave after it failed to clear $3,650.
    • The price is trading below $3,500 and the 100-hourly Simple Moving Average.
    • There is a bearish trend line forming with resistance at $3,450 on the hourly chart of ETH/USD (data feed via Kraken).
    • The pair could continue to move down if it trades below $3,200.

    Ethereum Price Dips Sharply

    Ethereum price failed to stay in a positive zone and started a fresh decline below $3,550, like Bitcoin. ETH price declined below $3,500 and $3,450 to enter a bearish zone.

    The decline gained pace below $3,350. Finally, the bulls appeared near $3,050. A low was formed at $3,058 and the price is now consolidating losses. There was a recovery wave above the 23.6% Fib retracement level of the recent decline from the $3,920 swing high to the $3,058 low.

    Ethereum price is now trading below $3,400 and the 100-hourly Simple Moving Average. If there is a decent increase, the price could face resistance near the $3,350 level. The next key resistance is near the $3,480 level and the 50% Fib retracement level of the recent decline from the $3,920 swing high to the $3,058 low. There is also a bearish trend line forming with resistance at $3,450 on the hourly chart of ETH/USD.

    Ethereum Price
    Source: ETHUSD on TradingView.com

    The first major resistance is near the $3,500 level. A clear move above the $3,500 resistance might send the price toward the $3,550 resistance. An upside break above the $3,550 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $3,750 resistance zone or even $3,800 in the near term.

    More Losses In ETH?

    If Ethereum fails to clear the $3,500 resistance, it could start a fresh decline. Initial support on the downside is near the $3,250 level. The first major support sits near the $3,200 zone.

    A clear move below the $3,200 support might push the price toward the $3,120 support. Any more losses might send the price toward the $3,050 region in the near term. The next key support sits at $3,020 and $3,000.

    Technical Indicators

    Hourly MACDThe MACD for ETH/USD is losing momentum in the bearish zone.

    Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

    Major Support Level – $3,200

    Major Resistance Level – $3,500



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