Ethereum’s price has recently experienced a downside correction after failing to clear the $3,880 resistance level. The cryptocurrency is now trading below $3,840 and the 100-hourly Simple Moving Average, signaling a possible slide toward $3,720. A key bullish trend line with support near $3,830 was broken on the hourly chart of ETH/USD, indicating a bearish trend.
Despite an initial increase above the $3,840 resistance zone, Ethereum struggled to clear the $3,885 level and eventually started a downside correction similar to Bitcoin. The price declined below the $3,840 support level, leading to a break below the bullish trend line on the hourly chart. The pair also fell below the 50% Fib retracement level, showing signs of a potential downtrend.
Although Ethereum is currently trading below $3,840 and the 100-hourly Simple Moving Average, the bulls are showing activity near the 61.8% Fib retracement level. If there is another increase, the price might face resistance near the $3,810 level before attempting to break above the $3,840 resistance. A successful breach could lead to further gains toward $3,920 and potentially the $4,000 level.
In case Ethereum fails to clear the $3,840 resistance, it could continue to move downwards. Initial support is near $3,765, followed by the $3,750 zone. The main support sits at $3,720, and a clear move below this level might push the price towards $3,650. Further losses could lead to a test of the $3,550 level in the near term, indicating a bearish outlook for Ethereum.
The Hourly MACD for ETH/USD is gaining momentum in the bearish zone, suggesting a potential continuation of the downside movement. The Hourly RSI is now below the 50 zone, indicating a shift towards bearish territory in the short term.
Overall, Ethereum’s price action suggests a possible downside movement in the near term, with key resistance levels to watch at $3,840 and $4,000. Traders and investors should monitor the support levels closely for any signs of further bearish momentum in Ethereum’s price.
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