Ethereum Stuck Below $3,600, Why Bears Might Aim Fresh Drop

Ethereum recovered above $3,400 and $3,500 against the US Dollar. ETH price is struggling near $3,600 and it might start a fresh decline.

Ethereum recovered losses after a sharp decline to $2,900.
The price is still trading well below $3,600 and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $3,500 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh decline unless there is a clear break above $3,600.

Ethereum Price is Facing Resistance
Ethereum declined heavily below $3,500 and $3,200. ETH even broke the $3,000 support and settled below the 100 hourly simple moving average, similar to bitcoin. It traded as low as $2,900 before starting an upside correction.
There was a break above the $3,300 and $3,400 resistance levels. The price even climbed above the $3,500 resistance zone. There was a break above a key bearish trend line with resistance near $3,500 on the hourly chart of ETH/USD.
However, the bears seem to be defending the $3,600 zone. A high is formed near $3,561 and the price is slowly moving lower. Ether is now trading well below $3,600 and the 100 hourly simple moving average.
There was also a break below the 23.6% Fib retracement level of the recent wave from the $3,218 swing low to $3,561 high. The price is now testing the same broke trend line at $3,440. An immediate resistance on the upside is near the $3,500 level.

Source: ETHUSD on TradingView.com
The first major resistance is near the $3,560 level. A proper move above the $3,560 level and $3,600 could increase the chances of a steady increase. The next major resistance sits near $3,680.
More Losses in ETH?
If ethereum fails to continue higher above the $3,500 and $3,560 resistance levels, it could start another downward move. An immediate support on the downside is near the $3,400 level.
The next major support is now forming near the $3,380 zone. It is near the 50% Fib retracement level of the recent wave from the $3,218 swing low to $3,561 high. The main support is near $3,335, below which the price could test the $3,200 zone.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,380
Major Resistance Level – $3,560

Joe Erickson

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