Ethereum Price Takes Hit, But This Support Could Spark Fresh Increase

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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.

Ethereum Price

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 MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $3,600

Major Resistance Level – $3,850

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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