Ethereum price is showing some bearish signs below the USD 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 $3,840 and the 100-hourly Simple Moving Average.
- There was a break below a key bullish trendline with support near $3,780 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new rise unless there is a close below the $3,700 support.
Ethereum price drops again
Ethereum price struggled to initiate a fresh rise above the USD 3,850 resistance zone. ETH failed to clear the 50% Fib retracement level of the downward wave from the $3,958 swing high to the $3,702 low.
There was a rejection pattern below the $3,800 level, unlike Bitcoin. The price fell below the USD 3,780 level. There was a break below a key bullish trendline 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 another rise occurs, ETH could encounter resistance near the $3,800 level. The first major resistance is around the $3,840 level.
An upside break above the USD 3,840 resistance could send the price higher. The next major resistance is at $3,900 or the 76.4% Fib retracement level of the downward wave from the $3,958 swing high to the $3,702 low, above which the price could gain strength and rise towards the $4,000 level.
If the bulls push Ether above the USD 4,000 level, the price could rise and test the USD 4,080 resistance. Even more gains could send Ether towards the USD 4,220 resistance zone.
Lose more in ETH?
If Ethereum fails to clear the USD 3,840 resistance, it could trigger another decline. The initial downside support is near the $3,730 level.
The next major support is near the $3,700 zone. A clear move below the USD 3,700 support could push the price towards USD 3,660. Any further losses could send the price towards the USD 3,550 level in the near term.
Technical indicators
hourly MACD – The MACD for ETH/USD is gaining strength in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $3,730
Major resistance level – $3,840
