Ethereum price corrected gains from the $4,080 resistance zone. ETH is now trading below $4,000 and showing some bearish signs.
- Ethereum started a downside correction from the $4,093 high.
- The price is trading above $3,920 and the 100-hourly Simple Moving Average.
- There was a break below a key bullish trend line with support at $3,965 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it stays above the $3,840 support zone.
Ethereum Price Corrects Some Gains
Ethereum price remained well-bid above the $3,750 support zone. ETH formed a base and started a fresh increase above $3,920 beating Bitcoin. The bulls were able to push the price above the $4,000 resistance.
The price tested the $4,080 resistance. A high was formed at $4,093 and the price started a downside correction. There was a move below the $4,050 and $4,000 levels. The price dipped below the 23.6% Fib retracement level of the upward move from the $3,680 swing low to the $4,093 high.
Besides, there was a break below a key bullish trend line with support at $3,965 on the hourly chart of ETH/USD. Ethereum price is now trading above $3,920 and the 100-hourly Simple Moving Average.
On the upside, the price seems to be facing hurdles near the $3,960 level. The first major resistance is near the $3,980 level. The main resistance is now forming near $4,000. A clear move above the $4,000 resistance might send the price toward the $4,080 resistance.
An upside break above the $4,080 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,150 resistance zone or even $4,220.
More Losses In ETH?
If Ethereum fails to clear the $4,000 resistance, it could start another decline. Initial support on the downside is near the $3,920 level. The first major support sits near the $3,880 zone.
A clear move below the $3,880 support might push the price toward the $3,840 support. Any more losses might send the price toward the $3,770 support level in the near term. The next key support sits at $3,650.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $3,920
Major Resistance Level – $3,980
Read the full article here
