Ethereum Breaks Key Support, Why Bulls Could Still Step In

Ethereum continued to fall below the $3.850 support area against the US dollar. The ETH market is consolidating, and it trades above the $3.700 support area.

  • Ethereum continued to decline below the levels of $3,850, $3,800, and $3,800 support.
  • The current price trades below $4,000, and the simple moving average is 100 hours.
  • A key bearish trend line is emerging with resistance close to $3,800 in the hourly chart of Ethereum/USD (datafeed via Kraken).
  • If the pair clears the $3.850 resistance zone, and the 100-hourly SMA, it could begin a new increase.

Ethereum price tumbles

Ethereum failed to move above $4,050 and $4,000 levels. ETH fell again and traded below $3,850.

The 100 hourly moving average and close to $4,000 were both below the support. It traded below $3,700 and as low as $3.665. Now, it is consolidating below the $3,000. It is currently nearing the $3,800 mark as a first resistance.

This is close to the 23.6% Fib level of the decline from $4,176 swing highs to $3,665 lows. A key bearish trendline is also visible on the hourly chart. It shows resistance close to $3,800.

Ethereum Price

It is close to the $3920 level. This is near the Fib retracement of 50% the decline from $4,176 high to $3,665 lowest. In the short term, a close to the $3920 level may signal a gradual increase. The price could even exceed the $4,000 barrier in this scenario. Next is $4,150.

Are There More Losses in Ethereum?

It could continue its slide if ethereum does not start an increase above $3,920. Initial support is close to the $3700 level.

The $3,660 support level is the key support. A clear break below $3,660 could lead to further losses. Price could drop to $3,200 below the $3,550 support.

Technical Indicators

Minutely MACDThe MACD of ETH/USD continues to grow in the bearish area.

Hourly RSIThe RSI is lower than 50 for USD/ETH.

Major Support Level – $3,660

Major Resistance Level – $3,920

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