Ethereum failed to settle above the $4,000 zone against the US Dollar. ETH price is correcting gains and it could dive if there is a break below $3,900.
Ethereum struggled to clear the $4,050 resistance zone and declined.
The price is trading below $4,020 and the 100 hourly simple moving average.
There is a key contracting triangle forming with resistance near $3,980 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above $3,900 to start a fresh increase in the near term.
Ethereum Price Corrects Lower
Ethereum made an attempt to gain strength above the $4,020 and $4,050 resistance levels. ETH even climbed above the $4,050 level and the 100 hourly simple moving average.
However, there was no upside continuation above $4,075. A high was formed near $4,075 and the price started a downside correction. There was a break below the $4,000 support level. Ether even declined below the 23.6% Fib retracement level of the upward move from the $3,750 swing low to $4,075 high.
It is now trading below $4,020 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $3,980 level. There is also a key contracting triangle forming with resistance near $3,980 on the hourly chart of ETH/USD.
The next major resistance is near the $4,020 level. A clear upside break above the $4,020 level could push the price further higher in the near term. The next stop for the bulls could be $4,080, above which the price could rise to $4,200. Any more gains could send the price towards the $4,250 level.
Downside Break in ETH?
If ethereum fails to start a fresh increase above the $4,000 level, it could continue to move down. An initial support on the downside is near the $3,940 level. The first key support is now forming near the $3,920 level.
The 50% Fib retracement level of the upward move from the $3,750 swing low to $4,075 high is also near the $3,920 zone. A downside break below the $3,920 and $3,900 levels could stage a fresh decline in the near term.
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 below the 50 level.
Major Support Level – $3,920
Major Resistance Level – $4,020
