Ethereum price started a huge decline from the $3,500 resistance zone. ETH is down over 8% and may continue to fall towards the $3,120 support.

• Ethereum is gaining value, breaking out of the $3,500 resistance zone.
• The price is trading below $3,400 and the 100-hour elementary moving average.
• On the hourly chart of the ETH/USD pair (data via Kraken), there was a breakout of a key descending channel with support at $3,380.
• The pair may continue its downward move towards the USD 3120 support zone.

Ethereum price drops below $3,350

Ethereum price failed to start a modern rally above the $3,500 resistance zone. ETH started a modern decline and traded below the $3,400 support zone. It fell more than 8% more than Bitcoin.

There was a breakout of a key descending channel with support at $3380 on the ETH/USD hourly chart. The pair even fell below $3200 and tested $3180. A low was formed near $3183, and the price is showing signs of further losses.

Ethereum is now trading below $3,400 and the 100-hour elementary moving average. If a recovery wave occurs, the price could face resistance near the 23.6% Fibonacci retracement level of the downward move from the $3,500 high to the $3,183 low at $3,250.

The first major resistance is near the $3,300 level. The next major obstacle is near the $3,350 level and the 50% Fibonacci retracement level of the downward move from the $3,500 high to the $3,183 low. A close above the $3,350 level could send Ether towards the $3,380 resistance.

The next key resistance is located around $3425. A break of the resistance at $3425 could see the price rally towards the resistance zone at $3500.

More ETH losses?

If Ethereum fails to break through the $3,250 resistance, it could continue to decline. Initial support on the downside is near $3,180. The first major support is near the $3,120 zone.

A clear move below the $3,150 support could push the price towards the $3,080 support level. Any further losses could send the price towards the $3,020 support level in the near future. The next key support level is at $2,950.

Technical indicators

Hourly MACD – MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for the ETH/USD pair is currently below the 50 level.

Major Support Level – $3,150

Main resistance level – $3250