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Ethereum price failed to stay above the $4,000 area. ETH is correcting gains and may struggle to stay above the $3,820 support area.
- Ethereum started a lower correction from the $4,100 area.
- The price is trading below $3,980 and the 100-hour Simple Moving Average.
- There was a break below the main bullish trend line with support at $3,940 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could continue to decline if it fails to stay above the $2,820 support area.
Ethereum Price Fails Again
Ethereum price has struggled to stay above the $4,000 level and Bitcoin is underperforming. ETH started a new low and traded below the $4,000 support area.
There was a move below the $3,980 and $3,940 support levels. Besides, there was a break below a key bullish trend line with support at $3,940 on the ETH/USD hourly chart. The pair even dipped below the $3,850 level. A low was formed at $3,837 and the price is now covering losses.
Ethereum price is now trading below $3,920 and the 100-hour Simple Moving Average. On the other hand, the price seems to be facing obstacles near the $3,900 level. It is near the 23.6% Fib retracement level of the downside from the $4,107 swing high to the $3,837 low.
The first major resistance is near the $3,970 level or the 50% Fib retracement level of the downside from the $4,107 swing high to the $3,837 low.
The main resistance now makes about $4,000. A clear move above the $4,000 resistance could send the price to the $4,120 resistance. A break above the $4,120 resistance could call for more gains in the coming sessions. In the mentioned case, Ether can rise to the resistance area of ​​$4,250 or even $4,320.
More Loss on ETH?
If Ethereum fails to clear the $3,900 resistance, it could continue to decline. The first support on the downside is near the $3,820 level. The first major support sits near the $3,780 area.
A clear move below the $3,780 support could push the price to the $3,650 support. Another loss could send the price to the $3,550 support level in the near term. The next key support remains at $3,500.
Technical References
MACD per hour – MACD of ETH/USD is trending in bearish territory.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Major Support Level – $3,820
Major Resistance Level – $3,970
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