Key Takeaways:
- Ethereum again managed to stay above the $2,900 support zone.
- ETH/USD is facing resistance near a key bearish trend line at $3,300 on the daily chart.
- To initiate a fresh increase, the price must surpass $3,300 and the 50-day simple moving average (blue).
NEW DELHI (CoinChapter.com) — Ethereum (ETH) is still to stay above $2,900. If ETH stays below $3,300 and the 50-DSMA for a long time, it could decline sharply.
Ethereum Price Holds Important Support
In the past few days, Ethereum remained in a range below the $3,350 resistance. The bulls attempted a fresh increase, but they struggled to push ETH above $3,350 and the 50-day simple moving average (blue). ETH reacted to the downside like Bitcoin and declined below $3,000.
However, the bulls were again active near the $2,900 support. They protected a close below the 61.8% Fib retracement level of the upward move from the $2,172 swing low to the $4,082 high.
Ethereum is again moving higher and trading above the $3,000 pivot level. On the upside, many hurdles are forming near $3,250, $3,300, and the 50-day simple moving average (blue). There is also a key bearish trend line in place with resistance at $3,300 on the daily chart.
To start a fresh increase, the price must settle above the $3,300 resistance zone and the 50-DSMA. In the stated case, the price might recover and test the $3,500 resistance. The next major resistance is visible near the $3,630 level.
A clear move above the $3,630 resistance could send Ether higher. The next major resistance sits at $3,920. If the bulls clear the $3,920 resistance, the price could resume its uptrend and rise toward the $4,080 resistance in the near term.
Downside Break In ETH?
Conversely, Ethereum might again fail to settle above $3,300 and start another decline. Immediate support sits near the $3,000 level. The first major support is still near the $2,900 zone.
A downside break and a daily close below $2,900 might send ETH toward the 76.4% Fib retracement level of the upward move from the $2,172 swing low to the $4,082 high at $2,620. If the bulls fail to protect the $2,620 support, the price could decline toward the $2,200 support level in the coming days.
Overall, Ethereum price is facing many hurdles near $3,300 and the 50-DSMA. If ETH continues to struggle, there is a risk of a larger decline toward $2,620 and then $2,200.
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