Ethereum price is declining from the $4,080 zone. ETH is now approaching a major support at $3,500 where the bulls might take a stand.
Ethereum started a downside correction from the $3,080 zone.
The price is trading below $3,800 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance at $3,850 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could resume its increase if it clears the $3,850 resistance zone.
Ethereum Price Dips
Ethereum price failed to stay above the $4,000 resistance zone and started a downside correction, like Bitcoin. ETH declined below the $3,920 and $3,850 support levels to enter a short-term bearish zone.
It even spiked below the $3,680 support zone. A low was formed at $3,625 and the price is now consolidating losses. It seems like there is a key bearish trend line forming with resistance at $3,850 on the hourly chart of ETH/USD.
Ethereum price is now trading below $3,800 and the 100-hourly Simple Moving Average. On the upside, immediate resistance is near the $3,740 level or the 23.6% Fib retracement level of the recent decline from the $4,083 swing high to the $3,625 low.
The first major resistance is near the $3,850 level and the trend line. It is close to the 50% Fib retracement level of the recent decline from the $4,083 swing high to the $3,625 low.
Source: ETHUSD on TradingView.com
The next major resistance is near $3,880, above which the price might gain bullish momentum. In the stated case, Ether could rally toward the $4,000 level. If there is a move above the $4,000 resistance, Ethereum could even rise toward the $4,080 resistance. Any more gains might call for a test of $4,150.
More Losses In ETH?
If Ethereum fails to clear the $3,850 resistance, it could continue to move down. Initial support on the downside is near the $3,680 level.
The first major support is near the $3,600 zone. The next key support could be the $3,500 zone. A clear move below the $3,500 support might send the price toward $3,350. Any more losses might send the price toward the $3,250 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,600
Major Resistance Level – $3,850
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