Ethereum price continued its decline and tested the USD 3,700 support. ETH is now consolidating and looking at another rise above USD 3,840.
- Ethereum extended its decline and tested the $3,700 zone.
- The price is trading near USD 3,800 and the 100-hour Simple Moving Average.
- A major bullish trendline is forming with support near $3,760 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new rise unless there is a close below the $3,700 support.
Ethereum price holds support
Ethereum’s price struggled to spark a new surge and, like Bitcoin, fell below the $3,750 support zone. ETH even traded below the USD 3,720 support zone. However, the bulls were active near the $3,700 support zone.
A low was formed at $3,702 and the price recently started a recovery wave. There was a move above the USD 3,750 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $3,957 swing high to the $3,702 low.
The Ethereum price is now trading near $3,800 and the 100-hourly Simple Moving Average. There is also a major bullish trendline forming with support near $3,760 on the hourly chart of ETH/USD.
If a new rise occurs, ETH could face resistance near the $3,830 level. The first major resistance is near the $3,880 level or the 76.4% Fib retracement level of the downward move from the $3,957 swing high to the $3,702 low.
An upside break above the USD 3,880 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 the bulls push Ether 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 4,220 resistance zone.
Another drop in ETH?
If Ethereum fails to clear the USD 3,830 resistance, it could trigger another decline. The initial downside support is near the $3,750 level and the trendline.
The next major support is near the $3,720 zone. A clear move below the USD 3,720 support could push the price towards USD 3,660. Any further losses could send the price towards the USD 3,550 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 above the 50 zone.
Major support level – $3,720
Major resistance level – $3,880