Ethereum Breaks Key Support, Why Bulls Could Still Step In
Ethereum extended decline below the $3.850 support zone against the US Dollar. ETH price is consolidating and trading above the $3,700 support zone.
- Ethereum extended decline below the $3,850 and $3,800 support levels.
- The price is now trading below $4,000 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $3,800 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it clears the $3,850 resistance zone and the 100 hourly SMA.
Ethereum Price Tumbles
Ethereum struggled to gain pace above the $4,000 and $4,050 levels. ETH started a fresh decline and traded below the $3,850 support zone.
There was a close below $4,000 and the 100 hourly simple moving average. The price even declined below the $3,700 support and traded as low as $3,665. It is now consolidating losses above the $3,700 level. An initial resistance is near the $3,800 level.
It is near the 23.6% Fib retracement level of the recent decline from the $4,176 swing high to $3,665 low. There is also a key bearish trend line forming with resistance near $3,800 on the hourly chart of ETH/USD.
The next major resistance is near the $3,920 level. It is close to the 50% Fib retracement level of the recent decline from the $4,176 swing high to $3,665 low. A close above the $3,920 level could stage a steady increase in the near term. In the stated case, the price might even surpass the $4,000 resistance in the near term. The next major resistance is near the $4,150 level.
More Losses in ETH?
If ethereum fails to start a fresh increase above the $3,920 level, it could extend its decline. An initial support on the downside is near the $3,700 level.
The key support is now forming near the $3,660 level. If there is a clear break below the $3,660 support, the price could extend losses. The next major breakdown support is $3,550, below which the price could decline towards $3,200.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is below the 50 level.
Major Support Level – $3,660
Major Resistance Level – $3,920