Technical Analysis – Ether drops below key SMAs, holds losses near 2,900
- ETHUSD breaches uptrend line to the downside
- Drops over 11% week-to-date to three-week low
- Momentum indicators reflect negative bias
Ether (ETHUSD) is extending a three day pullback from the range ceiling near 3,360 – intact since mid November – slipping below all three key simple moving averages (SMAs) as well as the medium term ascending trendline drawn from the April 8 trough. The largest altcoin is currently down 11.2% week to date, marking its steepest weekly decline since November.
Despite the sell-off, Ether still trades within its broader consolidation range, though momentum continues to weaken as reflected in the indicators. The MACD is flatlining around its zero line, the RSI is easing above the 30 threshold, and the stochastics are dipping into oversold territory, suggesting the bearish momentum is gaining traction.
Ether is now eyeing the range floor near the mid December lows at the 2,800 level. A decisive break below that zone would open the door toward the November 21 swing low at 2,620, followed by deeper support at the four month low around 2,400.
Conversely, a rebound from the three week low of 2,900, where price action currently sits, and a move back above the broken uptrend line near the psychologically significant 3,000 level would bring the 50day SMA near 3,084 back into view. Above that, the 20day SMA – intersecting with the 23.6% Fibonacci extension of the August–November pullback at 3,171 – marks the next hurdle, ahead of a retest of the 3,360 range ceiling that has capped gains since mid November.
Overall, Ether is extending its weekly correction and is now testing the critical 3,000 level, which has acted as critical support since early in the year. A sustained break below this zone would likely mark an important inflection point, shifting the near term bias decisively toward bearish.
