Ethereum price is falling against the $4,080 zone. ETH is now approaching a major support at $3,500 where the bulls may take a stand.
- Ethereum started a downward correction from the $3,080 zone.
- The price is trading below $3,800 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance at $3,850 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its rise if it crosses the $3,850 resistance zone.
Ethereum price drops
Ethereum’s price failed to stay above the $4,000 resistance zone and started a downward correction, just like Bitcoin. ETH fell below the USD 3,920 and USD 3,850 support levels and entered a short-term bearish zone.
It even peaked below the USD 3,680 support zone. A low was formed at $3,625 and the price is now consolidating losses. It appears that a major bearish trendline is forming with resistance at $3,850 on the hourly chart of ETH/USD.
The Ethereum price is now trading below $3,800 and the 100-hourly Simple Moving Average. On the upside, immediate resistance is near the $3,740 level or the 23.6% Fib retracement level of the recent decline from the $4,083 swing high to the $3,625 low.
The first major resistance is around the $3,850 level and the trendline. It is close to the 50% Fib retracement level of the recent decline from the $4,083 swing high to the $3,625 low.
Source: ETHUSD on TradingView.com
The next major resistance is near USD 3,880, above which the price could gain bullish momentum. In the mentioned case, Ether could rise to the $4,000 level. If there is a move above the USD 4,000 resistance, Ethereum could even rise towards the USD 4,080 resistance. Any gains could require a $4,150 test.
Lose more in ETH?
If Ethereum fails to clear the USD 3,850 resistance, it could continue falling. The initial downside support is near the $3,680 level.
The first major support is near the $3,600 zone. The next major support could be the $3,500 zone. A clear move below the USD 3,500 support could send the price towards USD 3,350. Any further losses could send the price towards the USD 3,250 level.
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 level.
Major support level – $3,600
Major resistance level – $3,850
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