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Ethereum price corrected gains from the $4,080 resistance zone. ETH is now trading below $4,000 and showing some bearish signs.
- Ethereum started a downward correction from the high of $4,093.
- The price is trading above $3,920 and the 100 hourly simple moving average.
- There was a break below a key uptrend line with support at $3,965 on the hourly chart of ETH/USD (data via Kraken).
- The pair could start a fresh rise if it holds above the $3,840 support zone.
Ethereum price corrects some gains
Ethereum price remained well bid above the $3,750 support zone. ETH formed a base and started a new rise above $3,920 outperforming Bitcoin. The bulls were able to push the price above the $4,000 resistance.
The price tested the resistance of $4,080. A high was formed at $4,093 and the price started a downward correction. There was a move below the $4,050 and $4,000 levels. The price fell below the 23.6% Fibonacci retracement level of the upward move from the low of $3,680 to the high of $4,093.
Additionally, there was a break below a key uptrend line with support at $3,965 on the hourly chart of ETH/USD. Ethereum price is now trading above $3,920 and the 100 hourly simple moving average.
On the upside, the price seems to face obstacles near the $3,960 level. The first major resistance is near the $3,980 level. The main resistance is now forming near $4,000. A clear move above the $4,000 resistance could send the price towards the $4,080 resistance.
A bullish break above the $4,080 resistance could require more gains in the coming sessions. In the given case, Ether could rise towards the resistance zone of $4,150 or even $4,220.
More losses on ETH?
If Ethereum fails to overcome the $4,000 resistance, it could start another decline. Initial support on the downside is near the $3,920 level. The first major support lies near the $3,880 area.
A clear move below the $3,880 support could push the price towards the $3,840 support. Any further losses could send the price towards the $3,770 support level in the near term. The next key support is at $3,650.
Technical Indicators
MACD hourly – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Main Support Level: $3,920
Main Resistance Level: $3,980
