Ethereum started a major decline from well above $4,000 against the US Dollar. ETH price is now correcting losses from $3,500, but it could struggle near $4,050 and $4,100.
Ethereum topped near the $4,375 before staring a downside correction. The price declined heavily below $4,000 and the 100 hourly simple moving average. There was a break below a major bullish trend line with support near $4,000 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is correcting higher, but it is likely to face sellers near $4,050 and $4,100.
Ethereum Price Corrects Sharply
Ethereum extended its upward move above the $4,200 level. ETH even traded to a new all-time high near $4,375 and it recently started a major decline, similar to bitcoin.
There was a sharp decline below the $4,000 level and the 100 hourly simple moving average. There was also a break below a major bullish trend line with support near $4,000 on the hourly chart of ETH/USD. The pair even broke the $3,700 support level.
A low is formed near $3,525 and it is now correcting higher. It recovered above the $3,700 pivot level. There was a break above the 23.6% Fib retracement level of the recent sharp decline from the $4,384 swing high to $3,525 swing low.
The price attempted a recovery above the $4,000 level. The 50% Fib retracement level of the recent sharp decline from the $4,384 swing high to $3,525 swing low is also facing hurdles. The bulls are facing hurdles near the $4,050 level and the 100 hourly simple moving average.
A clear break above the $4,000 level could open the doors for a steady increase. The next major resistance is near the $4,100 level, above which the price is likely to accelerate higher towards the $4,400 level.
Fresh Decline in ETH?
If Ethereum fails to continue higher above the $4,050 and $4,100 resistance levels, it could start another downside correction. An initial support on the downside is near the $3,820 level.
The first key support is near the $3,750 level. The main support is now forming near the $3,700 level. If there is a downside break below the $3,700 zone, the price could decline towards the $3,500 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is struggling to move into the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,770
Major Resistance Level – $4,100
