Can Bulls Save the Day?
Ethereum is struggling to gain pace above the $4,050 zone against the US Dollar. ETH price is recovering, but the bulls could face resistance near $4,175.
- Ethereum extended decline below the $4,050 and $4,000 support levels.
- The price is now trading below $4,100 and the 100 hourly simple moving average.
- There was a break below a connecting bullish trend line with support near $4,080 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it clears the $4,100 resistance zone and the 100 hourly SMA.
Ethereum Price Struggle Continues
Ethereum struggled to gain pace above the $4,175 and $4,200 levels. ETH started a fresh decline and traded below the $4,100 support zone.
There was a close below $4,100 and the 100 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near $4,080 on the hourly chart of ETH/USD. The pair traded below the 50% Fib retracement level of the recovery wave from the $3,833 swing low to $4,176 swing high.
It is now showing a few bearish signs below the $4,100 level. An initial resistance on the upside is near the $4,050 level. The first major resistance is near the $4,100 level and the 100 hourly SMA.
Source: ETHUSD on TradingView.com
The next major hurdle is near the $4,175 level. A clear break and close above the $4,175 level could stage a steady increase in the near term. In the stated case, the price might even surpass the $4,250 resistance in the near term. The next major resistance is near the $4,350 level.
Dips Limited in ETH?
If ethereum fails to start a fresh increase above the $4,100 level, it could extend its downside correction. An initial support on the downside is near the $4,000 level. The key support is now forming near the $3,960 level.
The 61.8% Fib retracement level of the recovery wave from the $3,833 swing low to $4,176 swing high is also near the $3,960 support zone. If there is a clear break below the $3,960 support, the price could extend losses. The next major breakdown support is $3,850, below which the price could decline towards $3,600.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is below the 50 level.
Major Support Level – $3,960
Major Resistance Level – $4,175