ethereum price is showing some bearish signs below the $3,840 support. eth could gain bearish momentum if there is a clear move below $3,700.
- ethereum extended its decline and tested the $3,700 zone.
- The price is trading below $3840 and the 100 hourly simple moving average.
- There was a break below a key uptrend line with support near $3,780 on the hourly chart of eth/USD (data via Kraken).
- The pair could start a fresh rise unless it closes below the $3,700 support.
ethereum price falls again
ethereum price struggled to start a fresh rise above the $3,850 resistance zone. eth failed to overcome the 50% Fibonacci retracement level of the descending wave from the high of $3,958 to the low of $3,702.
There was a rejection pattern below the $3,800 level unlike bitcoin. The price fell below the $3,780 level. There was a break below a key uptrend line with support near $3,780 on the hourly chart of eth/USD. ethereum is now trading below $3,840 and the 100 hourly simple moving average.
If there is another rise, eth could face resistance near the $3,800 level. The first major resistance is near the $3,840 level.
A bullish break above the $3,840 resistance could send the price higher. The next key resistance lies at $3,900 or the 76.4% Fibonacci retracement level of the down wave from the high of $3,958 to the low of $3,702, above which the price could gain traction and rise towards the $4,000 level.
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If the bulls push Ether above the $4,000 level, the price could rise and test the $4,080 resistance. Any further gains could send Ether towards the $4,220 resistance zone.
More losses on eth?
If ethereum fails to overcome the $3,840 resistance, it could start another decline. Initial support on the downside is near the $3,730 level.
The next major support is near the $3,700 area. A clear move below the $3,700 support could push the price towards $3,660. Any further losses could send the price towards the $3,550 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: $3,730
Main Resistance Level: $3,840
