Ethereum price recently experienced a downside correction after failing to break past the $3,885 resistance level. This correction has led ETH to drop below $3,800 and it could potentially slide further towards $3,720 in the near future. The failure to surpass the $3,880 resistance sparked this pullback, with the price currently trading below $3,840 and the 100-hourly Simple Moving Average. Additionally, a key bullish trend line with support near $3,830 was broken on the hourly chart of ETH/USD.
Despite the decline, Ethereum did manage to extend its increase above the $3,840 resistance zone before facing resistance at $3,885. The subsequent downside correction saw the price drop below $3,840 and the 100-hourly Simple Moving Average. However, the bulls have shown activity near the 61.8% Fib retracement level of the upward wave from the $3,730 swing low to the $3,885 high.
If Ethereum manages to make another upward move, it could face resistance around the $3,810 level, with the first major resistance at $3,840. Breaking above this resistance level could potentially propel the price towards $3,920 and eventually $4,000. However, failure to clear the $3,840 resistance could result in further downside movement. Initial support is seen near $3,765, followed by the $3,750 zone, and the main support at $3,720. A clear break below $3,720 could pave the way for a drop towards $3,650 and possibly $3,550 in the near term.
Technical Indicators
The hourly MACD for ETH/USD is gaining momentum in the bearish zone, indicating a downward trend in the price. Meanwhile, the hourly RSI is now below the 50 zone, further supporting the current bearish sentiment in the market.
Ethereum is currently facing a challenging period as it struggles to break above key resistance levels. The price action in the coming days will be crucial in determining whether ETH can bounce back from its recent correction or if it will continue to slide further. Traders and investors should closely monitor the support and resistance levels mentioned to gauge the potential direction of Ethereum’s price movement.
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