TA: Ethereum Won’t Go Down Quietly: Risk of Bounce Grows

Ethereum has formed a base in the vicinity of the $3660 area against the US dollar. Although the ETH price is moving higher, a move above $3920 is necessary to ensure that upside continues.

  • Ethereum is building a base at the $3.660 and $3.700 support levels.
  • The current price of the stock is trading at $4,000, with the simple moving average of 100 hours.
  • The hourly chart for ETH/USD showed a break above the connecting bearish trendline with resistance at $3,800 (data feed via Kraken).
  • A new rise could be possible if the pair crosses the $3,920 resistance area and the 100 hourly SMA.

Ethereum Price Forms a Base

Ethereum fell below the $3800 mark. ETH established a base at the $3,660-$3,700 levels and has recently begun an upward correction.

A move higher than the $3,800 mark was observed. Price moved above the 23.6% Fib level of the drop from $4,175 swing high, to $3,665 lower. A break was also seen above the connecting bearish trendline with resistance at $3,800, on an hourly chart for ETH/USD.

Resistance is currently being experienced by Ether prices near the $3880 area. Near the $3,920 mark is the next significant resistance. This is near the Fib retracement of 50% the drop from $4,175 high to $3,665 lowest. It could show a steady uptrend if it moves above the $3920 level.

Ethereum Price

Source: TradingView.com, ETHUSD

Next stop for bulls may be at $4,000. An increase in price above $4,000 could spark an immediate rally. The above scenario could lead to a rise up to the $4,250 mark.

Is there a new decline in ETH?

It could experience a further decline if ethereum does not start an increase above $3,920. The $3,820 level is a support area for the downside.

The $3,720 support level is the key support. The price may lose more if it breaks below the $3720 level. Next major support is at $3,660. Below this level, bears could aim to test $3,500. Price could drop to $3,320 if it suffers more losses.

Technical Indicators

Hourly MACDSlowly the MACD of ETH/USD gains pace in bullish zones.

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

Major Support Level – $3,720

Major Resistance Level – $3,920

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