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TA: Ethereum Prints Bearish Technical Pattern, Why ETH Could Resume Downtrend

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Ethereum broke the $2,820 support to enter a bearish zone against the US Dollar. ETH remains at a risk of more downsides below the $2,740 level.

  • Ethereum started a fresh decline after it failed to clear the $2,880 zone.
  • The price is now trading below $2,820 and the 100 hourly simple moving average.
  • There was a break below a key rising channel with support near $2,820 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must clear the $2,800 and $2,820 resistance levels to start a recovery wave.

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.

Ethereum Price

Source: ETHUSD on TradingView.com

A clear move above the $2,820 resistance might start a steady upward move. In the stated case, ether price might rise towards the $2,880 resistance. Any more gains may perhaps open the doors for a move above $2,920.

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.

Technical Indicators

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

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

Major Support Level – $2,720

Major Resistance Level – $2,820

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