The Ethereum price recently faced a downside correction from the $3,885 resistance zone, causing it to fall back below $3,800. This correction might lead to further downward movement towards the $3,720 mark. Despite starting the pullback after failing to clear the $3,880 resistance, Ethereum is still trading below $3,840 and the 100-hourly Simple Moving Average.
There was a significant break below a key bullish trend line with support near $3,830 on the hourly chart of ETH/USD. This break signaled a possible change in trend and led to a decline below the $3,840 support level. Additionally, the pair declined below the 50% Fib retracement level of the upward wave from the $3,730 swing low to the $3,885 high. Although the bulls are active near the 61.8% Fib retracement level, there is still a possibility of further downside movement.
If Ethereum manages to see another increase, it might face resistance near the $3,810 level, with the first major resistance sitting at $3,840. An upside break above this resistance could signal a potential move towards the $3,920 mark and even the $4,000 level. The $4,000 level is a crucial resistance point, with a break above it potentially leading to a test of the $4,080 resistance. Any further gains could see Ether reaching towards the $4,200 resistance zone.
On the downside, initial support is near $3,765, followed by major support near the $3,750 zone. The main support level stands at $3,720. A clear move below this support might push the price towards $3,650, with further losses potentially driving it down to the $3,550 level in the near term.
Technical Indicators
The Hourly MACD for ETH/USD is currently gaining momentum in the bearish zone, indicating a bearish outlook for Ethereum. Similarly, the Hourly RSI for ETH/USD is now below the 50 zone, which further supports the possibility of a continued downside movement for Ethereum’s price.
Ethereum’s price analysis points towards a potential downside correction and further bearish movement in the near term. Traders and investors should closely monitor the support and resistance levels mentioned to navigate the current market conditions effectively.
