According to the Ethereum analysis of October 12; The leading altcoin Ethereum is also affected by the pressure that comes with the rise of Bitcoin. ETH failed to break the $3,650 resistance and continued to decline. According to technical analysis by NewsBTC’s Aayush Jindal, it could drop below $3,450 in the short term:
- Ethereum struggled to gain strength above the $3,600 and $3,620 levels.
- The price is now trading below $3,550 and the 100 hourly simple moving average.
- There is a key bearish channel forming with resistance near $3,550 on the hourly chart of ETH/USD (data from Kraken).
- The pair could decline towards $3,350 unless it breaks the $3,550 resistance zone.
Ethereum Faces Barriers
Ethereum, like the rest of the market, continued to be negatively affected by the rise of Bitcoin. It failed to move above the $3,600 pivot level. ETH formed a high near $3,620 and started a downside correction. There was a break below the $3,550 support and the 100 hourly simple moving average. The price even broke the 50% Fib retracement level of the upward move from the $3,375 high to $3,620 high. Ethereum is currently trading below the $3,520 level and it is currently consolidating near the $3,500 level. Initial support on the downside is near the $3,480 level, according to Jindal.
Immediate resistance on the upside is near the $3,635 level and the 100 hourly SMA. The first major resistance is formed near the $3,550 level. There is also a key bearish channel forming with resistance near $3,550 on the hourly chart of ETH/USD. The next major resistance is near the $3,560 level, where the price could start a fresh increase. In the stated case, the price could climb to the $3,620 level. The next key resistance could be $3,650.
Will Ethereum Drop?
Jindal says that if Ethereum fails to continue higher above the $3,550 and $3,560 resistance levels, it could continue its decline. Initial support on the downside is near the $3,480 level. Initial key support is now formed near the $3,450 level. This is near the 61.8% Fib retracement level of the upward move from the $3,375 high to $3,620 high. A downside break could lead the price towards the $3,400 support zone in the near term. Any more losses could push ETH price towards the $3,375 support zone. The next key support could be $3,300.
What Are Technical Indicators Saying?
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,440
Main Resistance Level – $3,550
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