Ethereum extended decline below the $4,200 support against the US Dollar. ETH spiked below $4,000 and it might now correct higher in the short-term.
Ethereum started a fresh decline from the $4,350 and $4,300 resistance levels.
The price is now trading below $4,200 and the 100 hourly simple moving average.
There is a new rising channel forming with support near $4,000 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend losses if there is a proper close below $4,000 in the near term.
Ethereum Price Turns Red
Ethereum faced a strong resistance near the $4,350 zone. ETH formed a top near $4,350 before there was a sharp decline. The bears gained strength for a move below the $4,200 support and the 100 hourly simple moving average.
The decline extended below the $4,100 level. Ether price even spiked below the $4,000 level and a low is formed near $3,958. It is now consolidating near the $4,000 level. An immediate resistance on the upside is near the $4,050 level.
The 23.6% Fib retracement level of the recent decline from the $4,343 swing high to $3,958 low. The next major resistance is near the $4,100 level. There is also a new rising channel forming with support near $4,000 on the hourly chart of ETH/USD.
The main barrier is now forming near the $4,150 zone. It is near the 50% Fib retracement level of the recent decline from the $4,343 swing high to $3,958 low. A break above the $4,150 level may possibly spark a fresh rally. The next key resistance is near the $4,250 level. Any more gains could lead the price towards the $4,350 level in the near term.
More Losses in ETH?
If ethereum fails to climb above the $4,150 and $4,200 resistance levels, it could extend its decline. An initial support on the downside is near the $4,000 level.
The first major support is near the $3,950 level. A clear break below the $3,950 support could spark additional losses. The next major support is near the $3,850 level, below which the price could slide towards the $3,500 level in the near term.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is slowly moving higher towards the 50 level.
Major Support Level – $4,000
Major Resistance Level – $4,150
