In recent days, Ethereum’s price movement is similar to Bitcoin’s price movement. The price of both cryptocurrencies fell by almost 9%.
Ethereum price could not stay above $3300 and is gradually decreasing. At the time of publication Ethereum is below its 100-hour moving average and is trading at $2980. The price has begun to form a downtrend on the hourly chart, which provides resistance for the ETH/USD pair around $3050.
Since the ETH/USD pair is trading around $2980, traders’ attention is focused on the nearest support level of 2950. If the price drops below this level, we will see a sharp decline in the short term. In this case, the ETH/USD pair may drop to the area of 2880. The 2600 support level is far enough away to provide strong support for the ETH/USD pair.
If the bulls muster strength and can stop the decline in Ethereum’s price, they will need to raise the price above $3050 in order to activate buyers. The main resistance is still near the $3120 level. A breakout of this level can start a new growth. Here we can see a recovery in the Ethereum price to the $3200.
Investors remain optimistic about Ethereum. According to CryptoQuant, the number of new depositors is lower compared to the number of deposits, which is a solid sign that the whales are optimistic. A large number of deals were made before the upgrade. It looks like the whales have decided that the fair price for ETH is over $3000 in the long run. This means that they will not allow a decline below this level.