Ethereum Nosedives, Why Bulls Could Struggle In Near Term
Ethereum started a fresh decline from well above $4,650 against the US Dollar. ETH could extend downsides if there is a clear break below $4,200.
- Ethereum started a fresh decline from the $4,700 and $4,750 resistance levels.
- The price is now trading below $4,500 and the 100 hourly simple moving average.
- There was a break below an ascending channel with support near $4,620 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend losses if the bears gain strength below $4,200 in the near term.
Ethereum Price Extends Losses
Ethereum faced a strong resistance near the $4,850 zone. ETH formed a top near $4,769 before there was a sharp decline. The bears gained strength for a move below the $4,500 support and the 100 hourly simple moving average.
The decline extended below the $4,400 level. Ether price traded as low as $4,261 and is currently consolidating losses. An immediate resistance on the upside is near the $4,380 level.
The 23.6% Fib retracement level of the recent decline from the $4,769 swing high to $4,261 low is also near $4,380. The next major resistance is near the $4,400 level. The main barrier is now forming near the $4,500 zone.
Source: ETHUSD on TradingView.com
The $4,500 resistance is also near the 50% Fib retracement level of the recent decline from the $4,769 swing high to $4,261 low. A break above the $4,500 level may possibly spark a fresh rally. The next key resistance is near the $4,650 level. Any more gains could lead the price towards the $4,800 level in the near term.
More Losses in ETH?
If ethereum fails to climb above the $4,380 and $4,400 resistance levels, it could extend its decline. An initial support on the downside is near the $4,280 level.
The first major support is near the $4,250 level. A clear break below the $4,250 support could spark additional losses. The next major support is near the $4,150 level. Any more downsides could lead the price towards the $4,050 support. The next major support for the bulls is near the $4,000 level.
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now in the oversold zone and well below the 40 level.
Major Support Level – $4,250
Major Resistance Level – $4,500