TA: Ethereum Rejects $4K: Why It Is Vulnerable To Below $3.9k

Aayush Jindal

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Ethereum failed to settle above the $4,000 zone against the US Dollar. ETH price is correcting gains and it could dive if there is a break below $3,900.

Ethereum struggled to clear the $4,050 resistance zone and declined.
The price is trading below $4,020 and the 100 hourly simple moving average.
There is a key contracting triangle forming with resistance near $3,980 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above $3,900 to start a fresh increase in the near term.

Ethereum Price Corrects Lower

Ethereum made an attempt to gain strength above the $4,020 and $4,050 resistance levels. ETH even climbed above the $4,050 level and the 100 hourly simple moving average.

However, there was no upside continuation above $4,075. A high was formed near $4,075 and the price started a downside correction. There was a break below the $4,000 support level. Ether even declined below the 23.6% Fib retracement level of the upward move from the $3,750 swing low to $4,075 high.

It is now trading below $4,020 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $3,980 level. There is also a key contracting triangle forming with resistance near $3,980 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

The next major resistance is near the $4,020 level. A clear upside break above the $4,020 level could push the price further higher in the near term. The next stop for the bulls could be $4,080, above which the price could rise to $4,200. Any more gains could send the price towards the $4,250 level.

Downside Break 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 $3,940 level. The first key support is now forming near the $3,920 level.

The 50% Fib retracement level of the upward move from the $3,750 swing low to $4,075 high is also near the $3,920 zone. A downside break below the $3,920 and $3,900 levels could stage a fresh decline in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $3,920

Major Resistance Level – $4,020

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.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.