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Ethereum price corrected gains from the $4,080 resistance zone. ETH is now trading below $4,000 and showing bearish signs.
- Ethereum has started a downward correction from the high of $4,093.
- The price is trading above $3,920 and the 100 hourly simple moving average.
- There was a break below a key uptrend line with support at $3,965 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could begin a further rise if it stays above the $3,840 support zone.
Ethereum Price Corrects Some Gains
Ethereum price remained well above the $3,750 support zone. ETH formed a base and began a further increase above $3,920, beating Bitcoin. The bulls managed to push the price above the $4,000 resistance.
The price tested the $4,080 resistance. A high formed at $4,093 and the price began a downward correction. There was a move below the $4,050 and $4,000 levels. The price fell below the 23.6% Fib retracement level of the upward move from the $3,680 low to $4,093 high.
Additionally, there was a break below a key uptrend line with support at $3,965 on the ETH/USD hourly chart. Ethereum price is now trading above $3,920 and the 100 hourly simple moving average.
On the upside, the price seems to face obstacles near the $3,960 level. The first major resistance is near the $3,980 level. The main resistance is now forming near $4,000. A sharp move above the $4,000 resistance could push the price towards the $4,080 resistance.
A bullish break above the $4,080 resistance could lead to more gains in the coming sessions. In the indicated case, Ether could reach the resistance zone of $4,150 or even $4,220.
More losses in ETH?
If Ethereum fails to clear the $4,000 resistance, it could begin a further decline. Initial support on the downside is near the $3,920 level. The first major support lies near the $3,880 area.
A sharp move below the $3,880 support could push the price towards the $3,840 support. Any further losses could push the price towards the $3,770 support level in the near term. The next key support lies at $3,650.
Technical indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $3,920
Major Resistance Level – $3,980
