Key Takeaways:
- Ethereum is still sitting above the main uptrend support at $2,880.
- ETH/USD is struggling near a key bearish trend line with resistance at $3,250 on the daily chart.
- To initiate a fresh increase, the price must surpass $3,250 and the 50-day simple moving average (blue).
NEW DELHI (CoinChapter.com) — Ethereum (ETH) is consolidating above $2,880. ETH could take a major hit if the bulls fail to defend the $2,880-2,900 support zone.
Ethereum Price Stuck In Range
In the last analysis with a daily chart, we saw how Ethereum stayed above crucial uptrend support at $2,880-$2,900. The bulls were active near the 61.8% Fib retracement level of the upward move from the $2,172 swing low to the $4,082 high. Recently, there was a short-term recovery wave above the $3,050 resistance zone.
However, ETH bears were active near the $3,200 resistance zone. They protected a close above the 50-day simple moving average (blue). The price again reacted to the downside like Bitcoin and traded below $3,000.
Ethereum bulls are now putting up a fight near the same uptrend support at $2,880. The last three daily candles suggest that the bulls are struggling to push the price higher.
On the upside, immediate resistance is near the $3,060 level. The first major resistance is near the $3,200 level and the 50-day simple moving average (blue). There is also an important bearish trend line in place with resistance at $3,250 on the daily chart.
The trend line is close to the 50% Fib retracement level of the downward move from the $3,731 swing high to the $2,848 low. To start a fresh increase, the price must settle above the $3,250 resistance zone and the 50-DSMA.
In the stated case, the price might recover and test the $3,400 resistance. The next major resistance is visible near the $3,675 level. A clear move above the $3,675 resistance could send Ether higher toward $3,920. If the bulls clear the $3,920 resistance, the price could revisit the $4,080 resistance in the near term.
More Downsides?
Conversely, Ethereum might again fail to settle above $3,200 and extend losses. Immediate support sits near the $2,920 level. The first major support is still near the $2,880 zone.
A downside break and a daily close below $2,880 might send ETH toward the $2,620 support. If the bulls fail to protect the $2,620 support, the price could dive and test the $2,200 support level in the coming days.
Overall, Ethereum price is struggling below $3,200 and $3,250. If ETH settles below $2,880, there could be strong bearish moves in the near term.
