Ethereum failed to stay above the $4,250 support against the US Dollar. ETH could extend losses below $4,000 if it fails to recover above the $4,250 resistance.
Ethereum started a fresh decline from well above the $4,350 and $4,300 levels.
The price is now trading below $4,250 and the 100 hourly simple moving average.
There is a short-term declining channel forming with resistance near $4,250 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could accelerate lower if there is a clear break below the $4,000 support zone.
Ethereum Price Eyes More Downsides
Ethereum failed to stay above the $4,350 support level and extended decline, similar to bitcoin. ETH price declined sharply below the $4,300 and $4,250 support levels.
There was also a break below the $4,120 support. It is now trading below $4,250 and the 100 hourly simple moving average. A low is formed near $4,067 and ether is now consolidating losses. An initial resistance on the upside is near the $4,180 level.
The first major resistance is near the $4,250 level. There is also a short-term declining channel forming with resistance near $4,250 on the hourly chart of ETH/USD. The channel is close to the 23.6% Fib retracement level of the recent decline from the $4,269 high to $4,067 low.
The next major resistance is near the $4,350 level. The main breakout zone could be $4,420. It is near the 50% Fib retracement level of the recent decline from the $4,269 high to $4,067 low.
A close above the $4,420 level could start a fresh increase in the near term. In the stated case, the price might rise towards the $4,600 level. Any more gains could lift the price towards the next key hurdle at $4,750.
More Losses in ETH?
If ethereum fails to continue higher above the $4,250 and $4,350 resistance levels, it could continue to move down. An initial support on the downside is near the $4,080 level.
The first key support is now forming near the $4,050 level. A downside break below the $4,050 support might push the price below the $4,000 support. The next key support is near $3,850.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now near the 30 level.
Major Support Level – $4,050
Major Resistance Level – $4,250
