Ethereum price is still struggling to settle above $4,220. ETH is currently stable in a range, and a move below $3,880 could lead to a sharp drop.
- Ethereum has started a wave of recovery above the $4,000 and $4,020 levels.
- The price is trading below the 100-hour simple moving average at $4,050.
- On the hourly chart of ETH/USD (data feed via Kraken), a short-term contract triangle is forming with support at $3,950.
- If it trades above $4,075, the pair is likely to continue higher.
Supporting Ethereum price decline
Ethereum price struggled to settle above $4,200, correcting most of its gains similar to Bitcoin. ETH price fell below the $4,050 and $4,000 levels.
I also tried the $3,940 zone. A low was formed at $3,932 and the price is currently consolidating losses. There was a slight rally above the 23.6% Fib retracement level of the recent decline from the swing high of $4,216 to the low of $3,932.
Additionally, on the hourly chart of ETH/USD, a short-term contract triangle is forming with support at $3,950. Ethereum price is currently trading below $4,050 and its 100 hourly simple moving average.
On the upside, the price may face resistance near the $4,075 level. The next major resistance is around the $4,150 level and the 76.4% fib retracement level of the recent decline from the swing high of $4,216 to the low of $3,932. The first major resistance level is near the $4,200 level.
A clear break above the $4,200 resistance could send the price heading towards the $4,250 resistance. A break above the $4,250 area could require further gains in the coming sessions. In the above case, Ether could rise towards the $4,350 resistance zone and even $4,420 in the short term.
Will ETH fall again?
If Ethereum fails to break through the $4,150 resistance level, a fresh decline could begin. Initial support on the downside is near the $3,950 level and the triangle trendline. The first major support is located near the $3,880 zone.
A clear move below the $3,880 support could push the price towards the $3,820 support. Any further losses could send the price towards the $3,750 area in the near term. The next significant support is $3,640.
technical indicators
Hourly MACD – ETH/USD MACD is losing momentum in the bullish zone.
hourly RSI – The RSI for ETH/USD is currently below the 50 zone.
Major Support Level – $3,950
Major Resistance Level – $4,150
