Ethereum was unable to trade above the $4,000 mark against the US Dollar. The ETH price is making gains. It could drop if the US Dollar is broken below $3,900.
- Ethereum failed to break the $4,050 resistance and fell.
- It is currently trading at $4,020. The 100-hourly simple moving average is also below that level.
- On the hourly chart for ETH/USD, there is an important contracting triangle with resistance at $3,980 (data feed via Kraken).
- To start an increase, the pair should remain above $3900
Ethereum’s Price Drops
Ethereum tried to climb above the resistance levels at $4,020/$4,050. ETH even climbed higher than the $4.050 level, and the 100 hourly simple movement average.
There was however no upward continuation beyond $4,075. Near $4,075 a high was reached and then the market began to decline. A break below $4,000 was seen. Ether also fell below 23.6% Fib resistance level, which was the lower limit of the upward swing from $3,750 low to $4.075 high.
It trades below the $4,020 level and the 100 hourly simple moving mean. A resistance level near $3,980 is immediate. A key contracting triangle is also visible with resistance close to $3,980 in the hourly chart.
Source: TradingView.com, ETHUSD
Next is $4,020. In the short term, a clear upward break of the $4,000.020 level may push the price higher. Next stop for bulls is $4,080. Above that, the price may rise to $4.200. Price could rise to $4,250 if there are more gains.
What is the Downside to ETH?
It could fall further if ethereum does not start an increase above $4,000 Near the $3,940 area is initial support. Near the $3,920 mark is now the first support.
Also, the $2,920 area is near the Fib retracement levels of the upward swing from the $3.750 swing low to the $4.075 high. In the short term, a downside breakout below the levels of $3,920 or $3,900 could lead to a new decline.
Technical indicators
Minutely MACD – In the bearish zone, MACD is increasing in pace for USD/ETH.
Hourly RSI – The current RSI level for USD/ETH is below 50.
Major Support Level – $3,920
Major Resistance Level – $4,020
