Ethereum price started a downward correction from USD 4,250. ETH is falling below $4,000 and could fall further if it trades below $3,920.
- Ethereum started a downward correction below USD 4,150 and USD 4,050.
- The price is trading below $4,050 and the 100-hourly Simple Moving Average.
- There was a break below a bullish trendline with support at $4,100 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to fall if it trades below $3,920.
Ethereum Price Begins Downward Correction
Ethereum price extended gains above the USD 4,050 level, as did Bitcoin. The ETH price even surpassed $4,200 before the bears appeared. It peaked at $4,252 and the price recently started a downward correction.
There was a move below the USD 4,120 and USD 4,050 levels. The price fell below the 50% Fib retracement level of the recent wave, from the $3,708 swing low to the $4,252 high. Additionally, there was a break below a bullish trendline with support at $4,100 on the hourly chart of ETH/USD.
Ethereum price is now trading below $4,080 and the 100-hourly Simple Moving Average. If another rise occurs, the price may encounter resistance near the $4,040 level. The next major resistance is near the $4,080 level.
The first major resistance is around the $4,120 level. A clear move above the USD 4,120 resistance could send the price towards the USD 4,200 resistance. An upside break above the $4,200 region could call for more gains in the coming sessions. In the mentioned case, Ether could rise towards the resistance zone of $4,240 or even $4,250 in the short term.
Lose more in ETH?
If Ethereum fails to clear the USD 4,080 resistance, it could trigger another decline. The initial downside support is near the $3,950 level. The first major support is near the $3,920 zone and the 61.8% Fib retracement level of the recent wave from the $3,708 swing low to the $4,252 high.
A clear move below the USD 3,920 support could push the price towards the USD 3,880 support. Any further losses could send the price towards the $3,840 region in the near term. The next major support is at $3,780.
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 – $3,920
Major resistance level – $4,080