- Ethereum price started a downside correction from the $4,100 resistance against the US Dollar.
- ETH price is now trading below $3,750 and the 55 simple moving average (4 hours).
- There was a break below a key bullish trend line with support at $3,640 on the 4-hour chart (data feed from Coinbase).
- The pair could start a fresh increase if it clears the $3,650 resistance zone.
Ethereum price is declining below $3,550 against the US Dollar. ETH/USD remains at a risk of more downsides below the $3,400 support zone.
Ethereum Price Analysis
In the past few weeks, Ethereum started a decent increase above the $3,350 resistance zone against the US Dollar. ETH price climbed above the $3,500 and $3,800 resistance levels.
Finally, it tested the $4,100 resistance zone. A high was formed near $4,093 before there was a downside correction. There was a move below the $3,650 support zone. The price even traded below the 50% Fib retracement level of the upward wave from the $3,205 swing low to the $4,093 high.
There was also a break below a key bullish trend line with support at $3,640 on the 4-hour chart. ETH is now trading below $3,550 and the 55 simple moving average (4 hours).
On the upside, the price is now facing resistance near the $3,540 level. The first major resistance is near the $3,650 level. The next major resistance is near the $3,750 zone. A clear move above the $3,650 and $3,750 resistance levels might call for a fresh move to $3,880.
Any more gains could even send the price toward the $4,000 resistance zone or even $4,100 in the near term. On the downside, initial support is near the $3,400 level and the 76.4% Fib retracement level of the upward wave from the $3,205 swing low to the $4,093 high.
The next major support is now near the $3,300 level. A break below the $3,300 support could push the price to $3,050. If the bulls fail to protect the $3,050 support, the price might decline toward $2,880.
Looking at the chart, Ethereum price is clearly trading below $3,650 and the 55 simple moving average (4 hours). Overall, Ether price could continue to move down if it breaks the $3,400 support zone.
Technical indicators
4 hours MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is now below the 50 level.
Key Support Levels – $3,400, followed by the $3,200 zone.
Key Resistance Levels – $3,550 and $3,650.
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