Ethereum Price Faces Rejection Near Resistance Zone — Risk Of Deeper Correction Rises

ethereum-price-faces-rejection-near-resistance-zone-—-risk-of-deeper-correction-rises

Ethereum price started a recovery wave above $3,950. ETH failed to clear $4,050 and recently started a fresh decline below $4,000.

  • Ethereum started a fresh recovery above $3,880 and $3,980.
  • The price is trading below $3,950 and the 100-hourly Simple Moving Average.
  • There was a break below a bullish trend line with support at $3,960 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move down if it trades below $3,840.

Ethereum Price Fails Again

Ethereum price started a decent recovery wave above the $3,800 resistance, like Bitcoin. ETH price surpassed the $3,880 and $3,980 levels to enter a short-term positive zone.

The price even cleared the 50% Fib retracement level of the downward move from the $4,292 swing high to the $3,677 low. However, the bears remained active near the $4,080 resistance zone and prevented an upside continuation.

The price failed to settle above the 61.8% Fib retracement level of the downward move from the $4,292 swing high to the $3,677 low. There was a fresh decline below $4,000. Besides, there was a break below a bullish trend line with support at $3,960 on the hourly chart of ETH/USD.

Ethereum price is now trading below $3,960 and the 100-hourly Simple Moving Average. On the upside, the price could face resistance near the $3,980 level. The next key resistance is near the $4,050 level. The first major resistance is near the $4,080 level.

Ethereum Price
Source: ETHUSD on TradingView.com

A clear move above the $4,080 resistance might send the price toward the $4,120 resistance. An upside break above the $4,120 region might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,220 resistance zone or even $4,250 in the near term.

Downside Break In ETH?

If Ethereum fails to clear the $3,980 resistance, it could start a fresh decline. Initial support on the downside is near the $3,860 level. The first major support sits near the $3,840 zone.

A clear move below the $3,840 support might push the price toward the $3,820 support. Any more losses might send the price toward the $3,680 region in the near term. The next key support sits at $3,620.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,840

Major Resistance Level – $4,050

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