Ethereum Supported at $3.3K – Good Time to Go Long?

From the $3,530 level, Ethereum began a sharp decline against the US dollar. The price of ETH has dropped to $3,260 and is currently correcting higher. From the $3,530 resistance zone, ETHEREUM began a significant decline.

Currently, the price is below $3,400 and the 100 hourly simple moving average (SMA). On the hourly timeframe of ETH/USD, a major bearish trend line is forming with resistance near $3,460. The pair may encounter significant resistance near the $3,425 and $3,450 levels.

Ethereum has Dropped By 5%

Ethereum has struggled to break through the $3,525 and $3,530 resistance levels. ETH reached a high near $3,525 and then began a steep decline. The price fell below the support levels of $3,450 and $3,420. There was also a drop below $3,400 and the 100 hourly simple moving average. Finally, there was a significant drop below $3,300. It has traded as low as $3,261 and is currently recouping losses.

Above the $3,300 level, there was a recovery wave. It breached the 23.6 percent Fib retracement level of the recent drop from the $3,580 swing high to the $3,261 low. The price is currently encountering resistance near the $3,400 level. The next significant resistance is located near $3,420. It corresponds to the 50% Fib retracement level of the recent decline from the $3,580 swing high to the $3,261 low.

If the price of ether breaks through the $3,450 resistance level, it could begin a decent rise. The price could rise above the $3,500 mark in the scenario above. The next major stumbling block is near the $3,525 level, where the bears may take a stand.

More ETH Losses?

If Ethereum fails to start a new uptrend above $3,420, it may begin a new downtrend. On the downside, an initial support level is near $3,300. The next major support is around $3,250. If the price falls below the $3,250 support level, it may accelerate lower. However, there is a risk of moving toward the $3,050 level in the scenario above. Good luck!