Ethereum price is still struggling to break above $4,220. ETH is now consolidating within a range and could fall sharply if a move below $3,880 occurs.
- Ethereum started a recovery wave above the USD 4,000 and USD 4,020 levels.
- The price is trading below $4,050 and the 100-hourly Simple Moving Average.
- A short-term contract triangle is forming with support at $3,950 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if it trades above $4,075.
Ethereum price drops in support
Ethereum’s price struggled to break above $4,200 and corrected most of the gains, as did Bitcoin. ETH price fell below the USD 4,050 and USD 4,000 levels.
It even tested the $3,940 zone. A low was formed at $3,932 and the price is now consolidating losses. There was a small increase above the 23.6% Fib retracement level from the recent decline from the $4,216 swing high to the $3,932 low.
Additionally, a short-term contract triangle is forming with support at $3,950 on the hourly chart of ETH/USD. Ethereum price is now trading below $4,050 and the 100-hourly Simple Moving Average.
On the upside, the price could encounter resistance around the $4,075 level. The next major resistance is near the $4,150 level and the 76.4% Fib retracement level of the recent decline from the $4,216 swing high to the $3,932 low. The first major resistance is around the $4,200 level.
A clear move above the USD 4,200 resistance could send the price towards the USD 4,250 resistance. An upside break above the USD 4,250 region could call for more gains in the coming sessions. In the mentioned case, Ether could rise towards the resistance zone of $4,350 or even $4,420 in the short term.
Another drop in ETH?
If Ethereum fails to clear the USD 4,150 resistance, it could trigger another decline. The initial downside support is near the $3,950 level and the triangle trendline. The first major support is near the $3,880 zone.
A clear move below the USD 3,880 support could push the price towards the USD 3,820 support. Any further losses could send the price towards $3,750 in the near term. The next major support is at $3,640.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $3,950
Major resistance level – $4,150