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Ethereum price corrected its gains from the $4,080 resistance area. ETH is now trading below $4,000 and is showing some bearish signs.
- Ethereum started a downward correction from the high of $4,093.
- The price is trading above the $3,920 level and the 100 hourly simple moving average.
- There was a breakout below a major uptrend line with support at $3,965 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new increase if it remains above the $3,840 support area.
Ethereum price corrects some gains
Ethereum price remained in a good bid above the $3,750 support area. ETH formed a base and started a new surge above $3,920, outperforming Bitcoin. The bulls managed to push the price above the $4,000 resistance level.
The price tested the $4,080 resistance level. The high was formed at $4,093 and the price started a downward correction. There was a move below the $4,050 and $4,000 levels. The price fell below the 23.6% Fibonacci retracement level of the upward move from the swing low of $3,680 to the swing high of $4,093.
Moreover, there was a breakout below a major uptrend 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 appears 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 level could send the price towards the $4,080 resistance level.
A bullish break above the $4,080 resistance may require further gains in the coming sessions. In the mentioned case, the price of ether could rise towards the resistance area of $4,150 or even $4,220.
More losses in ETH?
If Ethereum fails to break above the $4,000 resistance level, it could start another decline. Initial support on the downside is near the $3,920 level. The first major support is near the $3,880 area.
A clear move below the $3,880 support level could push the price towards the $3,840 support level. Any further losses could send the price towards the $3,770 support level in the near term. The next major support is at $3,650.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Key Support Level – $3,920
Major resistance level – $3,980