Ethereum is forming a base above the $3,850 zone against the US Dollar. ETH price could start a fresh increase if there is a clear break above the $4,000 resistance.
- Ethereum is struggling to gain pace above the $4,000 resistance zone.
- The price is trading below $3,950 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $3,950 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it stays above the $3,850 support zone.
Ethereum started a steady recovery wave above the $3,750 and $3,800 resistance levels. ETH even climbed above the $4,000 level and the 100 hourly simple moving average.
However, the price failed to continue higher above the $4,040 and $4,050 resistance levels. A high was formed near $4,035 before the price started a downside correction. There was a move below the $4,000 and $3,950 support levels.
Ether price traded below the 23.6% Fib retracement level of the upward move from the $3,696 low to $4,035 high. It is now trading below $3,950 and the 100 hourly simple moving average.
An immediate resistance on the upside is near the $3,950 level. There is also a key bearish trend line forming with resistance near $3,950 on the hourly chart of ETH/USD. The next major resistance is near the $4,000 level. A clear move above the $4,000 level and the recent high could start a fresh increase in the near term.
Source: ETHUSD on TradingView.comThe next stop for the bulls could be $4,100. A close above the $4,0 level may possibly spark a move towards the $4,250 level.
More Losses 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 $3,900 level.
The key support is now forming near the $3,850 level. It is near the 50% Fib retracement level of the upward move from the $3,696 low to $4,035 high. If there is a clear break below the $3,850 support, the price could extend losses. The next major support is $3,700.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now near the 50 level.
Major Support Level – $3,850
Major Resistance Level – $4,000
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