TA: Ethereum Plunges After Rejection: Technicals Remain Bullish

The $3,850 resistance was not broken by Ethereum and the USD dollar has resumed its decline. The ETH price holds the $3.680 support but is at risk of falling further.

  • Ethereum experienced a further decline following the 3850 resistance zone.
  • The 100-hourly simple moving average and price are below $3,750.
  • A break was seen below a significant bullish trend line, with support close to $3,800 in the hourly chart of Ethereum/USD (datafeed via Kraken).
  • To turn green, the pair has to clear the $3750 area and the 100-hourly SMA.

New Decline in Ethereum’s Price

Ethereum failed to surpass the $3,850 mark. ETH reacted and traded below $3,800.

The hourly chart for ETH/USD showed a breakout below the major bullish trendline with support at $3,800. Below the $3,750 level of support and the simple 100-hour moving average, the pair fell below. Ether spiked to below $3700, while the bulls were still active at the $3680 level.

The price fell to $3,680. Now it is correcting higher. A break was seen above the level of $3,720. Even higher than the 50% Fib Retracement level, the price spiked from $3,850 swing high, to $3,681 lowest.

Bears seem to be very active around the $3750 level and the 100-hourly simple movement average. Near the $3,785 mark is the next significant resistance. It’s near the 61.8% Fib level of the downward movement from the $3.850 swing low to the $3.681 high.

Ethereum Price

Source: TradingView.com ETHUSD

The price could reach $3,850 with a strong upside breakout above the $3785 level. Additional gains may push the price up to $4,000 Next is $4,200.

What’s the down side to Ethereum?

If the $3.750 level is not reached, ethereum could fall further. The initial support for the downside is at the $3,700 mark.

Near the $3,680 mark is currently the first support. The downside breaking below $3,680 could cause a rapid decline. Near the $3,620 mark is the next significant support.

Technical Indicators

Minutely MACDIn the bearish zone, the MACD of ETH/USD has been losing momentum.

Hourly RSIThe RSI of ETH/USD is less than the 50 level.

Major Support Level – $3,680

Major Resistance Level – $3,750

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