Ethereum price fell sharply and tested the $3,580 support zone. ETH is now recovering and faces many obstacles near the $3,740 zone.
- Ethereum started a recovery wave and rose above the $3,660 resistance.
- The price is trading below $3,750 and the 100 hourly simple moving average.
- There is a bearish trend line forming with resistance near $3,740 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may begin a new upward move unless there is a close below the $3,640 support.
Ethereum Price Faces Resistance
Ethereum price extended its decline below the $3,660 support zone. ETH even fell below $3,600 before the bulls appeared. A low was formed near $3,574 and the price is now correcting losses as Bitcoin.
There was a move above the $3,650 and $3,660 levels. The price rose above the 50% Fib retracement level of the downward move from the $3,838 high to $3,574 low. However, there was no close above the $3,700 level.
Ethereum is now trading below $3,740 and the 100-hour Simple Moving Average. If there is another surge, ETH could face resistance near the $3,700 level.
The first major resistance is near the $3,740 level. There is also a bearish trend line forming with resistance near $3,740 on the hourly chart of the ETH/USD pair. The trend line is close to the 61.8% Fibonacci retracement level of the downward movement from the $3,838 swing high to $3,574 low.
A bullish breakout above the $3,740 resistance could push the price higher. The next key resistance lies at $3,800, above which the price could gain strength and rise towards the $3,840 level. If the bulls push Ether above the $3,840 level, the price could rise and test the $4,000 resistance. Any further gains could send Ether towards the $4,080 resistance zone.
Another decline in ETH?
If Ethereum fails to overcome the $3,740 resistance, it could continue falling. Initial negative support is near $3,660. The next major support is near the $3,640 zone.
Main support sits at $3,580. A clear move below the $3,580 support could push the price towards $3,500. Further losses could send the price towards the $3,450 level in the near term.
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 zone.
Major support level – $3,640
Main resistance level – $3,740