Ethereum Plunged 5% But Can Buyers Save The $3.5K Support?

Ethereum plunged 5% after gaining some bearish momentum below the $3720 support against the US dollar. Now, however, are the buyers going to be able to save the $3500 support? Let’s find out in today’s Ethereum news.

The ETH price tested the $3600 price level but now it is having a hard time recovering. Ethereum started a major drop below the $3850 level as well as the $3750 support level but the price is trading below the 100 hourly simple moving average as well. There’s a key bearish trend line forming with the resistance close to $3,715 on the hourly charts. The pair has to stay above the $3500 price level to avoid more downsides in the near term.

Ethereum plunged 5% as it had a hard time staying above $3880 which is why it extended the drop and traded below the key $3750 support level. There was a sharp move below the $3700 level as well so the price remained stuck below the 100 hourly simple moving average. The price traded as low as $3602 and it is now consolidating the losses with an immediate resistance on the upside being near $3655. it is near the 23.6% fib retracement level from the recent drop of the $3827 high to $3602 low and the next major resistance is close to the $3715.

There’s also a key bearish trend line that is forming with the resistance near $3715 on the hourly chart of the pair. The trend line is close to the 50% Fib Retracement level from the decline of the $3827 swing high to $3602 low but in order to recover, the price has to clear the $3715 resistance. In the stated case, the price could increase again towards the $3850 level or the 100 hourly simple moving average but more gains could send the price towards $4000. if ETH fails to start a new increase above $3715, it could continue moving down and the initial support on the downside will be set at the $3600 level. The first key support is now forming close to the $3550 level but a downside break below this level could put a lot of pressure on the bulls and it could drop even further to the $3200 support zone in the near term.

The hourly MACD for the pair is losing pace in the bearish zone and the hourly RSI for the pair is near the 30 levels. The major support level is set at $3600 and the resistnace one is set at $3715.