Ethereum price started a downside correction below the USD 3,880 support. ETH is now testing the USD 3,760 support and could target another increase.
- Ethereum started another downward correction below the $3,880 zone.
- The price is trading above USD 3,750 and the 100-hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance at $3,880 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rise again unless there is a move below the $3,760 support.
Ethereum price drops in support
Ethereum price failed to test the $4,000 resistance zone and started a downward correction, just like Bitcoin. ETH fell below the USD 3,920 and USD 3,880 support levels.
There was also a spike below the 50% Fib retracement level of the upward move from the $3,631 swing low to the $3,972 high. Ultimately, the price fell below the USD 3,800 level. However, the bulls were active near the $3,760 support zone.
The price remained above the 61.8% Fib retracement level of the upward move from the $3,631 swing low to the $3,972 high. Ethereum price is now trading above $3,750 and the 100-hourly Simple Moving Average.
The immediate resistance is near the $3,880 level. A connecting bearish trendline is also forming with resistance at $3,880 on the hourly chart of ETH/USD. The first major resistance is around the $3,920 level. An upside break above the USD 3,920 resistance could send the price higher.
The next major resistance is at USD 3,950, above which the price could gain strength and rise towards the USD 4,000 level. If there is a clear move above the USD 4,000 level, the price could rise and test the USD 4,080 resistance. Even more gains could send Ether towards the USD 4,150 resistance zone.
Lose more in ETH?
If Ethereum fails to clear the USD 3,880 resistance, it could continue falling. The initial downside support is near the USD 3,800 level.
The next major support is near the $3,760 zone. A clear move below the USD 3,760 support could push the price towards USD 3,720. Any further losses could send the price towards the USD 3,630 level in the near term.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $3,760
Major resistance level – $3,880