ethereum price fell sharply and tested the $3,580 support zone. eth is now recovering and facing many obstacles near the $3,740 zone.
- ethereum started a recovery wave and broke through the $3,660 resistance.
- The price is trading below $3750 and the 100 hourly simple moving average.
- A key bearish trend line is forming with resistance near $3,740 on the hourly chart of eth/USD (data via Kraken).
- The pair could start a new bullish move unless it closes below the $3,640 support.
ethereum price faces resistance
ethereum price extended its decline below the $3,660 support zone. eth even fell below $3,600 before the bulls emerged. A low was formed near $3,574 and the price is now correcting losses, like bitcoin.
There was a move above the $3,650 and $3,660 levels. The price rose above the 50% Fibonacci retracement level of the downward move from the high of $3,838 to the low of $3,574. However, there was no close above the $3,700 level.
ethereum is now trading below $3,740 and the 100 hourly simple moving average. If there is another rise, eth could face resistance near the $3,700 level.
The first major resistance is near the $3,740 level. There is also a key bearish trend line forming with resistance near $3,740 on the hourly chart of eth/USD. The trend line is near the 61.8% Fibonacci retracement level of the downward move from the high of $3,838 to the low of $3,574.
A bullish break above the $3,740 resistance could send the price higher. The next key resistance lies at $3,800, above which the price could gain traction and rise towards the $3,840 level. If the bulls push Ether above the $3,840 level, the price could rise and test the $4,000 resistance. Any further gains could send Ether towards the $4,080 resistance zone.
Another drop in eth?
If ethereum fails to clear the $3,740 resistance, it could continue down. Initial support on the downside is near $3,660. The next major support is near the $3,640 area.
The main support is located at $3,580. A clear move below the $3,580 support could push the price towards $3,500. Any further losses could send the price towards the $3,450 level in the near term.
Technical Indicators
MACD hourly – 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.
Main Support Level: $3,640
Main Resistance Level: $3,740
