rewrite this title Ethereum Sheds 5% Amid Market Pullback, Raising Risks of Deeper Correction

Ethereum price failed to stay above $3,350 and extended losses. ETH is down over 5% and might struggle to recover above $3,450 in the near term.

Ethereum started a fresh decline after it failed to stay above $3,500.
The price is trading below $3,350 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance at $3,500 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to move down if it settles below the $3,150 zone.

Ethereum Price Dips Sharply

Ethereum price failed to continue higher above $3,550 and started a fresh decline, like Bitcoin. ETH price dipped below $3,500 and entered a short-term bearish zone.

The decline gathered pace below $3,350 and the price dipped below $3,250. A low was formed at $3,153 and the price is now correcting some losses. There was a move toward the 23.6% Fib retracement level of the recent decline from the $3,561 swing high to the $3,153 low.

Ethereum price is now trading below $3,350 and the 100-hourly Simple Moving Average. If there is another recovery wave, the price could face resistance near the $3,300 level. The next key resistance is near the $3,350 level and the 50% Fib retracement level of the recent decline from the $3,561 swing high to the $3,153 low.

The first major resistance is near the $3,500 level. There is also a key bearish trend line forming with resistance at $3,500 on the hourly chart of ETH/USD. A clear move above the $3,500 resistance might send the price toward the $3,650 resistance. An upside break above the $3,650 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $3,800 resistance zone or even $3,880 in the near term.

More Losses In ETH?

If Ethereum fails to clear the $3,350 resistance, it could start a fresh decline. Initial support on the downside is near the $3,200 level. The first major support sits near the $3,150 zone.

A clear move below the $3,150 support might push the price toward the $3,050 support. Any more losses might send the price toward the $3,000 region in the near term. The next key support sits at $2,880 and $2,850.

Technical Indicators

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 zone.

Major Support Level – $3,150

Major Resistance Level – $3,350