Ethereum Nosedives, Why Bulls Could Struggle In Near Term

Ethereum began a new decline against the US dollar, with a high of $4650. If ETH breaks below $4200, downsides could continue.

  • Ethereum began a new decline at the resistance levels of $4,700/4,750.
  • The stock price currently trades at below $4500, and the simple moving average is 100 hours.
  • The hourly chart for ETH/USD showed a break below the ascending channel, with support at $4620 (data feed via Kraken).
  • If the bears increase their strength to below $4,200 soon, the pair may suffer further losses.

Ethereum Prices Continue to Losses

Ethereum was confronted with strong resistance at the $4,850 level. ETH hit a peak near $4769, before a steep decline. For a movement below $4,500 and the 100-hourly simple moving average, the bears gained power.

This decline was below $4,400. Ether prices fell as low as $4.261, and are currently consolidating their losses. The $4,380 mark is the nearest resistance to the upside.

Also, the Fib retracement of the decline from the $4.769 swing high and $4.261 low, which is 23.6%, is near $4.380. Next is the $4,000. Near the $4,500 level is the main resistance.

Ethereum Price

Source: ETHUSD

Also, $4,500 is near the 50% Fib resistance level, which was the lowest point of the recent fall from the $4.769 swing high and low to $4.261 low. Breaking above the $4,000.00 level could spark another rally. Next is $4,650 as the key resistance. In the short term, any further gains may push the price to the $4800 mark.

Are There More Losses in Ethereum?

It could continue its slide if it fails to rise above the resistance levels of $4,380 or $4,400. Initial support is at the $4,280 level.

Near the $4,250 support level is the first significant support. Additional losses could be triggered by a clear break below $4,250. Next is $4,150. A further decline could push the price below the $4,150 level. Near the $4,000 mark is the next support level for bulls.

Technical indicators

Minutely MACDIn the bearish zone, the MACD for USD/ETH is gradually losing speed.

Hourly RSIThe RSI of ETH/USD has moved into the oversold area and is well below the level 40.

Major Support Level – $4,250

Major Resistance Level – $4,500

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