Ethereum Price Faces Pressure: Bulls Tested After Setback
Ethereum price corrected gains below the $3,880 area. ETH is currently recovering some of its losses and faces hurdles near the $3,800 resistance zone.
- Ethereum started a downside correction below $3,880 and $3,800.
- The price is trading below $3,880 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance at $3,815 on the hourly chart of ETH/USD (data feed via Kraken).
- If the pair holds above the $3,600 support area, a fresh leg higher may begin.
Ethereum price drops further
Ethereum price failed to hold above the $4,000 area and started a downward correction, e.g. Bitcoin. ETH fell below the $3,880 and $3,800 support levels. It even surged below $3,600.
The low was formed at $3,488 and the price is now recovering some loss. It rose above $3,550 and $3,620. The price broke above the $3,700 level and tested the 50% Fibonacci retracement level of the downward move from the $4,017 swing high to $3,488 low.
Ethereum price is currently trading below $3,880 and the 100 hourly simple moving average. On the bright side, the price seems to be facing a hurdle near $3,780. The first major resistance level is near $3,800.
There is also a key bearish trend line forming with resistance at $3,815 on the hourly chart of ETH/USD. The trendline is near the 61.8% Fib retracement of the downward move from the swing high of $4,017 to the low of $3,488.
Major resistance is now forming near $3,880. A clear break above the $3,880 resistance could push the price towards the $4,000 resistance. An upside break above the $4,000 resistance could bring more gains in the coming sessions. In the above scenario, Ethereum could rise towards the $4,050 resistance zone or even $4,120.
ETH loses more?
If Ethereum fails to break the $3,780 resistance, it may start another decline. Initial support on the downside is near $3,620. The first major support is located near the $3,560 area.
A clear break below the $3,560 support could push the price towards the $3,480 support. Any further losses could push the price towards the $3,350 support in the near term. The next key support is located at $3,250.
Technical indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
hourly relative strength index – The RSI for ETH/USD is currently below the 50 area.
Major Support – $3,620
Major Resistance – $3,880
