Ethereum price is struggling above the $4,000 zone. ETH is slowly moving lower and there is a risk of a downside move towards the $3,850 support.
- Ethereum traded to a new multi-month high above $4,080 before correcting lower.
- The price is trading below $4,000 and the 100-hourly Simple Moving Average.
- A connecting bullish trendline is forming with support at $3,965 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its rise if it crosses the $4,025 resistance zone.
Ethereum price holds support
Ethereum price extended its rise above the USD 4,050 level, just like Bitcoin. ETH traded to a new multi-month high above $4,080 before staging a downward correction.
The price fell below the $4,000 level. It seems Ether bulls are struggling to keep the price above $4,000. There was a move below the 23.6% Fib retracement level of the upward move from the $3,830 swing low to the $4,083 high.
Ethereum price is now trading below $3,980 and the 100-hourly Simple Moving Average. However, the bulls are active near the $3,950 zone. A connecting bullish trendline is also forming with support at $3,965 on the hourly chart of ETH/USD. The trendline is close to the 50% Fib retracement level of the upward move from the $3,830 swing low to the $4,083 high.
If the pair remains above the $3,950 level, it could attempt another rise. The immediate resistance on the upside is near the USD 4,025 level. The first major resistance is around the $4,050 level. The next major resistance is near USD 4,085, above which the price could gain bullish momentum.
Source: ETHUSD on TradingView.com
In the mentioned case, Ether could rise towards the USD 4,150 level. If there is a move above the USD 4,150 resistance, Ethereum could even rise towards the USD 4,250 resistance. Any gains could require a $4,320 test.
Disadvantage of pause in ETH?
If Ethereum fails to clear the USD 4,025 resistance, it could initiate a downward correction. The initial downside support is near the $3,950 level.
The first major support is near the $3,880 zone. The next major support could be the $3,830 zone. A clear move below the USD 3,830 support could send the price towards USD 3,750. Any further losses could send the price towards the USD 3,650 level.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $3,950
Major resistance level – $4,025
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