Ethereum price fell heavily and tested the USD 3,580 support zone. ETH is now recovering and facing many hurdles near the $3,740 zone.
- Ethereum started a recovery wave and climbed above the USD 3,660 resistance.
- The price is trading below $3,750 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $3,740 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could begin another upward move unless there is a close below the $3,640 support.
Ethereum price faces resistance
Ethereum price extended its decline below the USD 3,660 support zone. ETH even fell below $3,600 before the bulls appeared. A low was formed near $3,574 and the price is now correcting losses just like Bitcoin.
There was a move above the USD 3,650 and USD 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 USD 3,700 level.
Ethereum is now trading below $3,740 and the 100-hourly Simple Moving Average. If another rise occurs, ETH could face resistance near the $3,700 level.
The first major resistance is around the $3,740 level. There is also a major bearish trendline forming with resistance around $3,740 on the hourly chart of ETH/USD. The trendline 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 USD 3,740 resistance could send the price higher. The next major resistance is at USD 3,800, above which the price could gain strength and rise towards the USD 3,840 level. If the bulls push Ether above the USD 3,840 level, the price could rise and test the USD 4,000 resistance. Even more gains could send Ether towards the USD 4,080 resistance zone.
Another drop in ETH?
If Ethereum fails to clear the USD 3,740 resistance, it could continue falling. The initial downside support is near USD 3,660. The next major support is near the $3,640 zone.
The main support is at USD 3,580. A clear move below the USD 3,580 support could push the price towards USD 3,500. Any further losses could send the price towards the USD 3,450 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 – $3,640
Major resistance level – $3,740