Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Ethereum’s price has fallen below the critical $4,000 support level, struggling to maintain recent gains and consolidating losses as sellers exert increased pressure. The cryptocurrency now trades below its 100-hourly Simple Moving Average, facing potential further declines if it breaches the $3,820 support zone.
Price Action and Current Status
The digital asset initiated a fresh downturn after failing to settle above the $4,120 mark, mirroring a broader market correction observed in Bitcoin. This led to a significant dip below both the $4,020 and $4,000 thresholds, with ETH even touching the $3,828 level before stabilizing.
Currently, Ethereum is trading beneath $4,000 and the 100-hourly Simple Moving Average. An hourly chart for ETH/USD reveals a key bearish trend line forming with resistance positioned around $4,070, indicating a challenging path for any immediate upward movement.
Resistance Levels to Watch
On the upside, immediate resistance for ETH is anticipated near the $3,950 level, followed by $4,020, which aligns with the 50% Fib retracement of the recent decline from $4,215 to $3,828. A more significant hurdle lies at the $4,070 trend line.
A decisive break above the $4,070 resistance could pave the way towards the $4,120 resistance zone. Should this level be cleared, Ether could potentially rise towards the $4,220 resistance or even $4,250 in the near term.
Support Levels and Downside Risk
Conversely, if Ethereum fails to overcome the $4,020 resistance, it risks further depreciation. Initial support is found near the $3,880 level, with the critical major support zone at $3,820.
A sustained move below the $3,820 support might accelerate declines towards $3,740. Any further losses could potentially send the price towards the $3,650 region or even $3,550 in the near term.
Technical Indicators
Technical indicators reflect the prevailing bearish sentiment. The Hourly Moving Average Convergence Divergence (MACD) for ETH/USD is currently gaining momentum in the bearish zone, while the Hourly Relative Strength Index (RSI) for ETH/USD is positioned below the 50 mark.
Ethereum stands at a pivotal point, with its ability to hold current support or overcome key resistance levels determining its short-term price trajectory amid tightening seller control.
