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Ethereum price corrected gains from the USD 4,080 resistance zone. ETH is now trading below $4,000 and showing some bearish signs.
- Ethereum started a downward correction from the high of $4,093.
- The price is trading above USD 3,920 and the 100-hourly Simple Moving Average.
- There was a break below a key bullish trendline with support at $3,965 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new rise if it remains above the $3,840 support zone.
Ethereum price corrects some gains
Ethereum price remained well above the USD 3,750 support zone. ETH formed a base and started a new rise above $3,920, beating Bitcoin. The bulls were able to push the price above the USD 4,000 resistance.
The price tested the USD 4,080 resistance. A high was reached at $4,093 and the price started a downward correction. There was a move below the USD 4,050 and USD 4,000 levels. The price fell below the 23.6% Fib retracement level of the upward move from the $3,680 swing low to the $4,093 high.
Additionally, there was a break below a key bullish trendline with support at $3,965 on the hourly chart of ETH/USD. Ethereum price is now trading above $3,920 and the 100-hourly Simple Moving Average.
On the upside, the price seems to be facing hurdles around the USD 3,960 level. The first major resistance is around the $3,980 level. The main resistance is now forming around $4,000. A clear move above the USD 4,000 resistance could send the price towards the USD 4,080 resistance.
An upside break above the USD 4,080 resistance could call for more gains in the coming sessions. In the mentioned case, Ether could rise towards the USD 4,150 or even USD 4,220 resistance zone.
Lose more in ETH?
If Ethereum fails to clear the $4,000 resistance, it could trigger another decline. The initial downside support is near the $3,920 level. The first major support is near the $3,880 zone.
A clear move below the USD 3,880 support could push the price towards the USD 3,840 support. Any further losses could send the price towards the USD 3,770 support level in the near term. The next major support is at $3,650.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $3,920
Major resistance level – $3,980
