- The Ethereum price initiated a downward correction from the $3,885 resistance zone, falling below $3,800.
- Currently trading under $3,840 and below its 100-hourly SMA, Ethereum faces potential further declines toward $3,720.
- A significant support line near $3,830 was breached on the ETH/USD hourly chart.
Ethereum price analysis suggests a possible upward move if it maintains above $3,720.
Ethereum Price Dips Again
Following an increase that pushed Ethereum past the $3,840 resistance, the cryptocurrency met a strong resistance at $3,885. In a movement that mirrored Bitcoin’s recent trend, ETH began a downward correction.
The decline saw Ethereum slipping below the $3,840 support, along with a break past a key bullish trend line around $3,830 on the ETH/USD hourly chart. Notably, it fell below the 50% Fibonacci retracement level from the $3,730 low to the $3,885 high.
Now trading below the $3,840 mark and the 100-hourly Simple Moving Average, Ethereum finds support near the 61.8% Fibonacci retracement level of the recent upward wave.
If Ethereum attempts to surge again, it would first face resistance around the $3,810 level, followed by significant resistance at $3,840. Clearing the $3,840 resistance could propel the cryptocurrency higher, targeting $3,920 as the next critical resistance before aiming for the $4,000 threshold.
Surpassing the $4,000 level might drive Ethereum towards $4,080, with any further gains potentially pushing it up to the $4,200 resistance zone.
Further Decline Possible?
If Ethereum fails to break through the $3,840 resistance, a continuation of the downward trend is likely. Initial support is seen around $3,765, with a more substantial support level at $3,750.
Critical support rests at $3,720. A decisive move below this level could lead Ethereum down to $3,650, and possibly even lower to $3,550 in the near term.
Technical Indicators
The hourly MACD for ETH/USD shows growing bearish momentum.
The RSI for ETH/USD has dropped below the 50 level, indicating a bearish signal.
Key Support Level – $3,765
Key Resistance Level – $3,840
Conclusion
In summary, Ethereum has faced a significant pullback from its highs, encountering substantial resistance at $3,885. Watch for pivotal support levels around $3,720 as the coin struggles to regain upward momentum. Breaking key resistance could see Ethereum rising once more; otherwise, further declines are feasible. Investors should monitor the indicators closely for short-term price movements.
