Ethereum Faces Key Challenge, Why Fresh Decline Still Possible

Ethereum started a recovery wave above the $2,840 level against the US Dollar. ETH is now facing a major challenge near $2,905 and the 100 hourly SMA.

Ethereum started a decent recovery wave above the $2,840 and $2,850 levels.
The price is still below $2,900 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $2,900 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must clear the $2,900 and $2,915 resistance levels to continue higher.

Ethereum Price Faces Resistance
Ethereum traded as low as $2,766 before it started a recovery wave. ETH was able to settle above the $2,800 resistance zone.
There was a move above the $2,840 and $2,850 resistance levels. Ether even climbed above the 23.6% Fib retracement level of the key drop from the $3,040 swing high to $2,766 low. It is still below $2,900 and the 100 hourly simple moving average.
On the upside, an initial resistance is seen near the $2,900 level. There is also a major bearish trend line forming with resistance near $2,900 on the hourly chart of ETH/USD.
Besides, the 100 hourly simple moving average is acting as a barrier near $2,900. The next major resistance is near the $2,905 level. It is near the 50% Fib retracement level of the key drop from the $3,040 swing high to $2,766 low. A clear move above the $2,900 resistance might start another increase.

Source: ETHUSD on TradingView.com
The next major resistance on the upside might be $2,975. Any more gains may perhaps send the price towards the $3,030 resistance. Any more gains might send the price towards the $3,120 level.
Fresh Decline in ETH?
If ethereum fails to gain pace above the $2,900 resistance, it could start a downside correction. An initial support on the downside is near the $2,860 zone.
The first major support is near the $2,850 level. If there is a downside break below the $2,850 support, the price could revisit the key $2,800 support zone. Any more losses may perhaps open the doors for a larger decline towards the $2,600 level or even $2,550.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is just above the 50 level.
Major Support Level – $2,850
Major Resistance Level – $2,900

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