TA: Ethereum Breaks Key Support, Why Bulls Could Still Step In

Aayush Jindal

1 year ago

2 mins read

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Ethereum extended decline below the $3.850 support zone against the US Dollar. ETH price is consolidating and trading above the $3,700 support zone.

Ethereum extended decline below the $3,850 and $3,800 support levels.
The price is now trading below $4,000 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $3,800 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if it clears the $3,850 resistance zone and the 100 hourly SMA.

Ethereum Price Tumbles

Ethereum struggled to gain pace above the $4,000 and $4,050 levels. ETH started a fresh decline and traded below the $3,850 support zone.

There was a close below $4,000 and the 100 hourly simple moving average. The price even declined below the $3,700 support and traded as low as $3,665. It is now consolidating losses above the $3,700 level. An initial resistance is near the $3,800 level.

It is near the 23.6% Fib retracement level of the recent decline from the $4,176 swing high to $3,665 low. There is also a key bearish trend line forming with resistance near $3,800 on the hourly chart of ETH/USD.

The next major resistance is near the $3,920 level. It is close to the 50% Fib retracement level of the recent decline from the $4,176 swing high to $3,665 low. A close above the $3,920 level could stage a steady increase in the near term. In the stated case, the price might even surpass the $4,000 resistance in the near term. The next major resistance is near the $4,150 level.

More Losses in ETH?

If ethereum fails to start a fresh increase above the $3,920 level, it could extend its decline. An initial support on the downside is near the $3,700 level.

The key support is now forming near the $3,660 level. If there is a clear break below the $3,660 support, the price could extend losses. The next major breakdown support is $3,550, below which the price could decline towards $3,200.

Technical Indicators

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 – $3,660

Major Resistance Level – $3,920

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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