Ethereum price started a downward correction below $4,120. ETH is moving down below $4,000 and could fall further if it trades below $3,880.
- Ethereum started a downward correction below $4,050 and $4,000.
- The price is trading below $4,000 and the 100 hourly simple moving average.
- A bearish trend line is forming with resistance at $4,000 on the hourly chart of ETH/USD (data via Kraken).
- The pair could continue to decline if it trades below $3,880.
Ethereum price falls further
Ethereum price failed to stay in a positive zone and began a new decline, like Bitcoin. ETH price fell below $4,120 and $4,050 to enter a bearish zone.
There was a clear move below the 61.8% Fibonacci retracement level of the upward move from the low of $3,708 to the high of $4,252. Furthermore, a bearish trend line is forming with resistance at $4,000 on the hourly chart of ETH/USD.
Ethereum price is now trading below $4,000 and the 100 hourly simple moving average. If there is another rise, the price could face resistance near the $4,000 level and the trend line. The next key resistance is near the $4,030 level and the 100 hourly simple moving average.
The first major resistance is near the $4,080 level. A clear move above the $4,080 resistance could send the price towards the $4,120 resistance. A bullish break above the $4,120 region could call for more gains in the coming sessions. In the indicated case, Ether could rise towards the resistance zone of $4,200 or even $4,220 in the short term.
More losses on ETH?
If Ethereum fails to overcome the $4,000 resistance, it could start a new decline. Initial support on the downside is near the $3,880 level. The first major support lies near the $3,840 zone and the 76.4% Fibonacci retracement level of the upward move from the low of $3,708 to the high of $4,252.
A clear move below the $3,840 support could push the price towards the $3,750 support. Any further losses could send the price towards the $3,700 region in the near term. The next key support lies at $3,650 and $3,620.
Technical Indicators
MACD hourly – 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.
Main Support Level: $3,880
Main resistance level: $4,000
