Ethereum Price Struggles Beyond $4K: Will the Bulls Return?
Ethereum price corrected gains from the $4,080 resistance zone. ETH is currently trading below $4,000 and showing some bearish signs.
- Ethereum started a downside correction from a high of $4,093.
- The price is trading above $3,920 and the 100 hourly simple moving average.
- Support is seen at $3,965 on the hourly chart of ETH/USD (data feed via Kraken), below a key bullish trend line.
- If the pair holds above the $3,840 support area, a fresh increase may begin.
Ethereum price corrects some gains
Ethereum price remains above the $3,750 support area. ETH forms a base and starts a new leg higher, breaking above $3,920 Bitcoin. The bulls were able to push the price above the $4,000 resistance.
The price tested the resistance at $4,080. A high was formed at $4,093 and the price started to rise downside correction. The price fell below the $4,050 and $4,000 levels. The price fell below the 23.6% Fib retracement level of the upward move from the $3,680 swing low to $4,093 high.
Additionally, there was a break below a key bullish trend line with support at $3,965 on the hourly chart of ETH/USD. Ethereum price is currently trading above $3,920 and the 100 hourly simple moving average.
On the bright side, the price seems to be facing a hurdle near the $3,960 level. The first major resistance level is near $3,980. Major resistance is now forming near $4,000. A clear break above the $4,000 resistance may push the price towards the $4,080 resistance.
An upside break above the $4,080 resistance may bring more gains in the coming sessions. In the above scenario, Ethereum could rise towards the $4,150 resistance zone or even $4,220.
ETH loses more?
If Ethereum fails to break above the $4,000 resistance, it may start another decline. Initial support on the downside is near $3,920. The first major support is located near the $3,880 area.
A clear break below the $3,880 support could push the price towards the $3,840 support. If there is further decline, the price may move towards the $3,770 support in the near term. The next key support is located at $3,650.
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 – $3,920
Major Resistance – $3,980
