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Ethereum price failed to settle above the $4,000 area. ETH is correcting gains and may have difficulty staying above the $3,820 support area.
- Ethereum has started a downward correction from the $4,100 area.
- The price is trading below the $3,980 level and the 100 hourly simple moving average.
- There was a breakout below a major uptrend line with support at $3,940 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue moving down if it fails to stay above the $2,820 support area.
Ethereum price has failed again
Ethereum price struggled to stay above the $4,000 level and Bitcoin underperformed. ETH started a new decline and traded below the $4,000 support area.
There was a move below the $3,980 and $3,940 support levels. Moreover, there was a breakout below a major uptrend line with support at $3,940 on the hourly chart of ETH/USD. The pair also fell below the $3,850 level. The low was formed at $3,837 and the price is now consolidating losses.
Ethereum price is now trading below the $3,920 level and the 100 hourly simple moving average. On the upside, the price appears to be facing hurdles near the $3,900 level. It is close to the 23.6% Fibonacci retracement level of the downward move from the high of $4,107 to the low of $3,837.
The first major resistance is near the $3,970 level or the 50% Fibonacci retracement level of the downward move from the high of $4,107 to the low of $3,837.
The main resistance is now forming near $4,000. A clear move above the $4,000 resistance level could send the price towards the $4,120 resistance level. A bullish break above the $4,120 resistance may require further gains in the coming sessions. In the mentioned case, the price of ether could rise towards the resistance area of $4,250 or even $4,320.
More losses in ETH?
If Ethereum fails to break above the $3,900 resistance level, it may continue to move lower. Initial support on the downside is near the $3,820 level. The first major support is near the $3,780 area.
A clear move below the $3,780 support level could push the price towards the $3,650 support level. Any further losses could send the price towards the $3,550 support level in the near term. The next major support is at $3,500.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Key Support Level – $3,820
Major resistance level – $3,970
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