Ethereum price started a downside correction from the USD 3,885 resistance zone. ETH is now back below $3,800 and could continue to fall towards $3,720.
- Ethereum staged a pullback after failing to break the USD 3,880 resistance.
- 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 $3,830 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 $3,720 support.
Ethereum price drops again
Ethereum price extended its rise above the USD 3,840 resistance zone. However, ETH struggled to reach the $3,885 level and started a downward correction like Bitcoin.
There was a decline below the USD 3,840 support level. Additionally, there was a break below a key bullish trendline with support near $3,830 on the hourly chart of ETH/USD. The pair fell below the 50% Fib retracement level of the upwave from the $3,730 swing low to the $3,885 high.
Ethereum is now trading below $3,840 and the 100-hourly Simple Moving Average. However, the bulls are active near the 61.8% Fib retracement level of the upwave from the $3,730 swing low to the $3,885 high.
If another rise occurs, ETH could encounter resistance near the $3,810 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 USD 3,920, above which the price could gain strength and rise towards the USD 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 4,200 resistance zone.
Lose more in ETH?
If Ethereum fails to clear the USD 3,840 resistance, it could continue to decline. The initial downside support is near $3,765. The next major support is near the $3,750 zone.
The main support is at $3,720. A clear move below the USD 3,720 support could push the price towards USD 3,650. 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 – $3,765
Major resistance level – $3,840
