Ethereum price is struggling above the $4,000 zone. ETH is slowly moving lower and there is a risk of a downside thrust toward the $3,850 support.
- Ethereum traded to a new multi-month high above $4,080 before correcting lower.
- The price is trading below $4,000 and the 100-hourly Simple Moving Average.
- There is a connecting bullish trend line forming with support at $3,965 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its increase if it clears the $4,025 resistance zone.
Ethereum Price Holds Support
Ethereum price extended its increase above the $4,050 level, like Bitcoin. ETH traded to a new multi-month high above $4,080 before there was a downside correction.
The price declined below the $4,000 level. It seems like Ether bulls are struggling to keep the price above $4,000. There was a move below the 23.6% Fib retracement level of the upward move from the $3,830 swing low to the $4,083 high.
Ethereum price is now trading below $3,980 and the 100-hourly Simple Moving Average. However, the bulls are active near the $3,950 zone. There is also a connecting bullish trend line forming with support at $3,965 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the upward move from the $3,830 swing low to the $4,083 high.
If the pair stays above the $3,950 level, it could attempt another increase. Immediate resistance on the upside is near the $4,025 level. The first major resistance is near the $4,050 level. The next major resistance is near $4,085, above which the price might gain bullish momentum.
Source: ETHUSD on TradingView.com
In the stated case, Ether could rally toward the $4,150 level. If there is a move above the $4,150 resistance, Ethereum could even rise toward the $4,250 resistance. Any more gains might call for a test of $4,320.
Downside Break In ETH?
If Ethereum fails to clear the $4,025 resistance, it could start a downside correction. Initial support on the downside is near the $3,950 level.
The first major support is near the $3,880 zone. The next key support could be the $3,830 zone. A clear move below the $3,830 support might send the price toward $3,750. Any more losses might send the price toward the $3,650 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,950
Major Resistance Level – $4,025
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.