Ethereum Price Dips Below $3,000: Warning Signs Emerge

Ethereum's price has started to decline significantly from the $3,200 resistance level. Currently, ETH is facing consolidation of its losses and seems to be at risk of declining further, potentially dropping below the $2,880 mark.

Key Takeaways

Ethereum's price experienced a sharp decline, dropping below $3,000.
The cryptocurrency is now trading below both $3,000 and the 100-hourly Simple Moving Average (SMA).
A significant bearish trend line has formed, with resistance at $3,020 on the ETH/USD hourly chart (data sourced from Kraken).
If Ethereum stays above the $2,880 level, there may be potential for recovery.

Ethereum Price Flashes Bearish Bias

Ethereum's Price Drops Over 5%

Ethereum's price struggled to maintain stability above the $3,200 mark and began a notable decline, similar to trends seen in Bitcoin. The ETH price fell below $3,150 and $3,120, entering a bearish phase. Eventually, traders pushed the price down past the $3,000 threshold. It has reached a low point of $2,910 and is presently consolidating losses, remaining below the 23.6% Fibonacci retracement level of the recent decline from the $3,367 swing high to the $2,910 swing low.

A bearish trend line is also emerging with resistance at $3,020 as indicated on the ETH/USD hourly chart. Currently, Ethereum's price is below $3,000 and the 100-hourly Simple Moving Average. Should bullish traders manage to prevent further losses beneath the $2,880 level, there is a possibility for the price to attempt a rebound.

Immediate resistance is found near the $3,020 mark, with primary resistance levels at approximately $3,080 and $3,120. If the price moves clearly above the $3,120 resistance zone, it might reach toward $3,150 or the 50% Fibonacci retracement level from the $3,367 swing high to the $2,910 swing low.

Ethereum Price Source: ETHUSD on TradingView.com

If Ethereum breaks above the $3,150 range, it could pave the way for further gains in the upcoming days, potentially reaching the $3,220 resistance zone or even hitting $3,300 soon.

Is Downside Continuation Ahead for ETH?

If Ethereum is unable to overcome the $3,020 resistance level, it may continue to decline. The initial support on the downside is around the $2,920 mark, with the first major support level near $2,880.

A decline below the $2,880 level could lead the price toward the $2,800 support area, while more significant losses might bring Ethereum down to around $2,750. The key support level to watch would be $2,650.

Technical Indicators

Hourly MACD: The MACD for ETH/USD is showing increasing momentum in the bearish zone.
Hourly RSI: The RSI for ETH/USD is currently below the 50 mark.
Major Support Level: $2,880
Major Resistance Level: $3,020