Ethereum price is falling from the $4,080 zone. ETH is now approaching major support at $3,500 where bulls can position themselves.
- Ethereum started a downside correction in the $3,080 zone.
- The price is trading below $3,800 and the 100 hourly simple moving average.
- There is a bearish trendline forming with resistance at $3,850 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may resume its rise if it surpasses the $3,850 resistance zone.
Ethereum Price Drops
Ethereum price failed to stay above the $4,000 resistance zone and started a downside correction, as Bitcoin. ETH fell below the $3,920 and $3,850 support levels to enter a short-term bearish zone.
It even reached below the $3,680 support zone. A low was formed at $3,625 and the price is now consolidating losses. It appears there is a bearish trend line forming with resistance at $3,850 on the hourly ETH/USD chart.
Ethereum price is now trading below $3,800 and the 100-hour Simple Moving Average. On the upside, immediate resistance is near the $3,740 level or the 23.6% Fibonacci retracement level of the recent decline from the $4,083 swing high to $3,625 low.
The first major resistance is near the $3,850 level and the trend line. It is near the 50% Fibonacci retracement level of the recent decline from the swing high of $4,083 to the low of $3,625.
Source: ETHUSD on TradingView.com
The next major resistance is near $3,880, above which the price could gain bullish momentum. In the stated case, Ether could rise towards the $4,000 level. If there is a move above the $4,000 resistance, Ethereum could even rise towards the $4,080 resistance. Any additional winnings may require a $4,150 test.
More losses in ETH?
If Ethereum fails to overcome the $3,850 resistance, it could continue falling. Initial downside support is near the $3,680 level.
The first major support is near the $3,600 zone. The next important support could be the $3,500 zone. A clear move below the $3,500 support could send the price towards $3,350. Further losses could send the price towards the $3,250 level.
Technical Indicators
MACD per hour – The MACD for ETH/USD is gaining momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,600
Main resistance level – $3,850
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