Ethereum price began a downward correction below $4,120. ETH drops below $4,000 and could fall further if it trades below $3,880.
- Ethereum began a downward correction below $4,050 and $4,000.
- The price is trading below $4,000 and the 100 hourly simple moving average.
- A downtrend line forms with resistance at $4,000 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could continue to decline if it trades below $3,880.
Ethereum price falls further
The price of Ethereum failed to stay in a positive zone and started a new decline, like Bitcoin. ETH price fell below $4,120 and $4,050 to enter a bearish zone.
There was a clear move below the 61.8% Fibonacci retracement level of the upward move from the $3,708 low to $4,252 high. Furthermore, a downtrend line is forming with resistance at $4,000 on the ETH/USD hourly chart.
Ethereum price is now trading below $4,000 and the 100 hourly simple moving average. If there is another increase, the price could face resistance near the $4,000 level and the trendline. The next key resistance is near the $4,030 level and the 100 hourly simple moving average.
The first major resistance is near the $4,080 level. A sharp move above the $4,080 resistance could push the price towards the $4,120 resistance. A bullish break above the $4,120 region could lead to further gains in the coming sessions. In the presented case, Ether could reach the resistance zone of $4,200 or even $4,220 in the short term.
More losses in ETH?
If Ethereum fails to breach the $4,000 resistance, it could begin a further decline. Initial downside support is near the $3,880 level. The first major support lies near the $3,840 area and the 76.4% Fibonacci retracement level of the upward move from the $3,708 low to $4,252 high.
A sharp move below the $3,840 support could push the price towards the $3,750 support. Any further losses could push the price towards the $3,700 region in the near term. The next key support lies at $3,650 and $3,620.
Technical indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $3,880
Major Resistance Level – $4,000
