Ethereum Could Avoid a Major Drop if it Closes Above One Key Level

Ethereum was able to react and test $4,050 against USD. To begin a sustained recovery, ETH needs to recover more than $4,250 or $4,300.

  • Ethereum experienced a sharp decline after passing the $4350 resistance zone.
  • The current price trades below $4,250 as well as the simple 100-hour moving average.
  • A key bearish trend line is emerging with resistance close to $4,210 in the hourly chart of Ethereum/USD (datafeed via Kraken).
  • Failure to keep above the $4.050 support zone could lead to further losses.

Ethereum price is facing difficulties

Ethereum sought a rebound above the $4,300 resistance area, similar to bitcoin. However, ETH prices failed to gain above $4,350.

Near $4,320 was the high and then it started to fall again. A break was seen below the support area of $4,250. Below the $4,200 support level and 100-hourly simple moving average, the decline picked up. Near $4,026 a low was established and now the price is correcting its losses.

The Ether price has risen to $4,100 from $4,120. Now, it is near the 50% Fib Retracement level, which marks the recent fall from the $4.321 swing high, to the $4.026 low.

The $4,200 mark is the initial support for the upside. The Fib retracement level at 61.8% of the recent fall from $4.321 swing high, to $4.026 low, is very close. It is close to the $4,250 mark and the 100-hourly simple moving average.

Ethereum Price

Source: TradingView.com ETHUSD

In the short term, a close to the $4,200 or $4,250 levels might trigger a new increase. The price could rise to $4,350 in the above scenario. Additional gains may push the price higher towards $4,350 or the next hurdle of $4,500.

What Are the Losses of ETH More?

It could cause further losses if ethereum does not start an increase above $4,250. Initial support is at the $4,120 mark.

Near the $4,050 mark is the first support. The price could fall further if it breaks below $4,050. Below $4,000 there could be severe losses.

Technical Indicators

Hourly MACDThe bullish zone is seeing a rapid increase in MACDs for ETH/USD.

Hourly RSIThe RSI is close to 50 for USD/ETH.

Major Support Level – $4,050

Major Resistance Level – $4,250

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