Ethereum price has been facing challenges as it struggles to maintain its position above the $4,000 zone. The price has been slowly moving lower, indicating a potential downside thrust towards the $3,850 support level. Despite trading to a new multi-month high above $4,080, Ethereum has corrected lower, trading below $4,000 and the 100-hourly Simple Moving Average. A connecting bullish trend line has formed with support at $3,965 on the hourly chart of ETH/USD via Kraken, suggesting the possibility of a bearish trend if the $4,025 resistance zone is not cleared.
The recent price action of Ethereum shows an extension of the increase above the $4,050 level, similar to Bitcoin’s movement. However, there was a downside correction after reaching a new multi-month high above $4,080. The decline below $4,000 suggests that Ether bulls are struggling to maintain the price above this psychological level. The move below the 23.6% Fib retracement level of the upward move from the $3,830 swing low to the $4,083 high has put the price below $3,980 and the 100-hourly Simple Moving Average. Despite this, bullish activity near the $3,950 zone and the connecting bullish trend line at $3,965 on the hourly chart of ETH/USD provide some hope for a potential increase if the pair stays above $3,950.
In the event that Ether manages to rally towards the $4,150 level and breaks above the resistance, Ethereum could potentially rise to the $4,250 level, with further gains leading to a test of $4,320. However, failure to clear the $4,025 resistance could trigger a downside correction. Initial support lies at the $3,950 level, followed by the $3,880 zone and key support at $3,830. A break below $3,830 might result in a price drop towards $3,750, and further losses could push the price down to $3,650.
The hourly MACD for ETH/USD indicates a loss of momentum in the bullish zone, while the hourly RSI has dropped below the 50 level. This suggests a potential reversal in the current price trend. It is essential for traders and investors to conduct their own research and analysis before making any investment decisions, as investing in cryptocurrencies carries inherent risks. The information provided in this article is for educational purposes only and should not be considered as financial advice. Always trade responsibly and at your own risk.
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