Ethereum price continued its decline and tested the $3,720 support. ETH is now consolidating and facing several hurdles near the $3,800 level.
- Ethereum continued its decline and tested the $3,720 area.
- The price is trading below the $3,820 level and the 100 hourly simple moving average.
- There is a new downtrend line forming with resistance at $3,810 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue moving lower if it breaks the $3,720 support level.
Ethereum price holds support
Ethereum price remained in a short-term bearish zone and fell below the $3,800 support area, like Bitcoin. ETH also traded below the 50% Fib retracement level of the upward move from the swing low of $3,631 to the swing high of $3,975.
However, the bulls were active near the $3,720 support area. They protected the 76.4% Fib retracement level of the upward move from the swing low of $3,631 to the swing high of $3,975.
Ethereum price is now trading below the $3,800 level and the 100 hourly simple moving average. If there is a new increase, ETH may face resistance near the $3,800 level. There is also a new downtrend line forming with resistance at $3,810 on the hourly chart of the ETH/USD pair.
The first major resistance is near the $3,850 level. A bullish breakout above the $3,850 resistance could push the price higher. The next major resistance is at $3,890, above which the price could gain momentum and rise towards the $3,950 level.
If the bulls push Ethereum above the $3,950 level, the price could rise and test the $4,000 resistance level. Any further gains could send Ether towards the $4,080 resistance area.
More losses in ETH?
If Ethereum fails to break above the $3,800 resistance level, it may continue to move lower. Initial support on the downside is near the $3,720 level.
The next major support is near the $3,640 area. A clear move below the $3,640 support could push the price towards $3,550. Any further losses could send the price towards the $3,500 level in the near term.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Major support level – $3,720
Major resistance level – $3,800