Ethereum’s price failed to extend gains above $4,600 and fell. ETH is now heading lower and could extend losses below $4,400 in the near term.
- Ethereum started a downward correction below USD 4,600 and USD 4,550.
- The price is trading below $4,550 and the 100-hourly Simple Moving Average.
- A short-term ascending channel is forming with support at $4,460 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to decline if it trades below $4,400.
Ethereum price drops again
Ethereum’s price extended gains above $4,620 and $4,650, as did Bitcoin. ETH price tested the USD 4,750 resistance zone before making a fresh decline. A low was formed at $4,414 and the price is now consolidating losses.
There was a small recovery wave above $4,500. The price climbed above the 23.6% Fib retracement level of the recent decline from the $4,759 swing high to the $4,414 low. However, the bears are active around the $4,550 level. Furthermore, a short-term ascending channel is forming with support at $4,460 on the hourly chart of ETH/USD.
Ethereum price is now trading below $4,520 and the 100-hourly Simple Moving Average. On the upside, the price could encounter resistance near the $4,520 level. The next major resistance is near the $4,550 level.
The first major resistance is near the $4,585 level or the 50% Fib retracement level of the recent decline from the $4,759 swing high to the $4,414 low. A clear move above the USD 4,585 resistance could send the price towards the USD 4,620 resistance. An upside break above the $4,620 region could call for more gains in the coming sessions. In the mentioned case, Ether could rise towards the resistance zone of $4,720 or even $4,750 in the short term.
Lose more in ETH?
If Ethereum fails to clear the USD 4,550 resistance, it could trigger another decline. The initial downside support is near the $4,460 level. The first major support is near the $4,420 zone.
A clear move below the USD 4,420 support could push the price towards the USD 4,320 support. Any further losses could send the price towards $4,250 in the near term. The next major support is at USD 4,150.
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 – $4,420
Major resistance level – $4,550