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The Ethereum price failed to move above the $4,000 zone. ETH is correcting gains and could struggle to stay above the $3,820 support zone.
- Ethereum started a downward correction from the $4,100 zone.
- The price is trading below $3,980 and the 100-hourly Simple Moving Average.
- There was a break below a key bullish trendline with support at $3,940 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue falling if it fails to hold above the $2,820 support zone.
Ethereum price fails again
Ethereum’s price struggled to stay above the $4,000 level and underperformed Bitcoin. ETH started a new decline and traded below the $4,000 support zone.
There was a move below the USD 3,980 and USD 3,940 support levels. Additionally, there was a break below a key bullish trendline with support at $3,940 on the hourly chart of ETH/USD. The pair even fell below the $3,850 level. A low was formed at $3,837 and the price is now consolidating losses.
Ethereum price is now trading below $3,920 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles around the USD 3,900 level. It is close to the 23.6% Fib retracement level of the downward move from the $4,107 swing high to the $3,837 low.
The first major resistance is near the $3,970 level or the 50% Fib retracement level of the downward move from the $4,107 swing high to the $3,837 low.
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 4,120 resistance. An upside break above the USD 4,120 resistance could call for more gains in the coming sessions. In the mentioned case, Ether could rise towards the USD 4,250 resistance zone or even USD 4,320.
Lose more in ETH?
If Ethereum fails to clear the USD 3,900 resistance, it could continue to decline. The initial downside support is near the $3,820 level. The first major support is near the $3,780 zone.
A clear move below the USD 3,780 support could push the price towards the USD 3,650 support. Any further losses could send the price towards the USD 3,550 support level in the near term. The next major support is at $3,500.
Technical indicators
hourly MACD – The MACD for ETH/USD is gaining strength in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $3,820
Major resistance level – $3,970
