Aayush Jindal
Ethereum price declined heavily and tested the $3,580 support zone. ETH is now recovering and faces many hurdles near the $3,740 zone.
- Ethereum started a recovery wave and climbed above the $3,660 resistance.
- The price is trading below $3,750 and the 100-hourly Simple Moving Average.
- There is a key bearish trend line forming with resistance near $3,740 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh upward move unless there is a close below the $3,640 support.
Ethereum Price Faces Resistance
Ethereum price extended its decline below the $3,660 support zone. ETH even declined below $3,600 before the bulls appeared. 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 climbed above the 50% Fib retracement level of the downward move from the $3,838 swing high to the $3,574 low. 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 increase, ETH might 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 close to the 61.8% Fib retracement level of the downward move from the $3,838 swing high to the $3,574 low.
An upside break above the $3,740 resistance might send the price higher. The next key resistance sits at $3,800, above which the price might gain traction and rise toward the $3,840 level. If the bulls push Ether above the $3,840 level, the price might rise and test the $4,000 resistance. Any more gains could send Ether toward the $4,080 resistance zone.
Another Decline In ETH?
If Ethereum fails to clear the $3,740 resistance, it could continue to move down. Initial support on the downside is near $3,660. The next major support is near the $3,640 zone.
The main support sits at $3,580. A clear move below the $3,580 support might push the price toward $3,500. Any more losses might send the price toward the $3,450 level in the near term.
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 – $3,640
Major Resistance Level – $3,740
