Ethereum price extended its downside correction below the USD 3,800 support. ETH is now approaching the $3,720 support and could be aiming for another surge.
- Ethereum continued its decline after failing to hold above the $3,880 zone.
- The price is trading below $3,880 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance at $3,800 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to decline if it breaks the $3,720 support.
Ethereum price continues to fall
Ethereum price started a downward correction below the USD 3,880 support zone, just like Bitcoin. ETH fell below the USD 3,850 and USD 3,800 support levels and entered a short-term bearish zone.
There was also a clear move below the 50% Fib retracement level of the upwave, from the $3,630 swing low to the $3,974 high. Ultimately, the price fell below the USD 3,780 level. The bears are now targeting a move towards the support at $3,720.
The Ethereum price is now trading above $3,800 and the 100-hourly Simple Moving Average. If another rise occurs, ETH could face resistance near the $3,800 level. There is also a major bearish trendline forming with resistance at $3,800 on the hourly chart of ETH/USD.
The first major resistance is around the $3,840 level. An upside break above the USD 3,840 resistance could send the price higher. The next major resistance is at USD 3,900, above which the price could gain strength and rise towards the USD 3,940 level. If there is a clear move above the USD 3,940 level, the price could rise and test the USD 4,000 resistance. Even more gains could send Ether towards the USD 4,080 resistance zone.
Lose more in ETH?
If Ethereum fails to clear the USD 3,800 resistance, it could continue to decline. The initial downside support is near the $3,720 level or the 76.4% Fib retracement level of the upward wave from the $3,630 swing low to the $3,974 high.
The next major support is near the $3,625 zone. A clear move below the USD 3,625 support could push the price towards USD 3,550. Any further losses could send the price towards the USD 3,500 level in the short term.
Technical indicators
hourly MACD – The MACD for ETH/USD is gaining strength in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $3,720
Major resistance level – $3,800