Ethereum price continued its decline and tested the USD 3,720 support. ETH is now consolidating and facing many hurdles around the $3,800 level.
- Ethereum extended its decline and tested the $3,720 zone.
- The price is trading below $3,820 and the 100-hourly Simple Moving Average.
- A new bearish trendline is forming with resistance at $3,810 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 holds support
Ethereum price remained in a bearish zone in the short term and, like Bitcoin, fell below the $3,800 support zone. ETH even traded below the 50% Fib retracement level of the upward move from the $3,631 swing low to the $3,975 high.
However, the bulls were active near the $3,720 support zone. They protected the 76.4% Fib retracement level of the upward move from the $3,631 swing low to the $3,975 high.
The Ethereum price is now trading below $3,800 and the 100-hourly Simple Moving Average. If another rise occurs, ETH could face resistance near the $3,800 level. A new bearish trendline is also forming with resistance at $3,810 on the hourly chart of ETH/USD.
The first major resistance is around the $3,850 level. An upside break above the USD 3,850 resistance could send the price higher. The next major resistance is at USD 3,890, above which the price could gain strength and rise towards the USD 3,950 level.
If the bulls push Ether above the USD 3,950 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.
The next major support is near the $3,640 zone. A clear move below the USD 3,640 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 losing momentum 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