Technical Analysis: Ethereum Rejects $4,000! What Levels Are Next?
Ethereum , the second largest cryptocurrency , failed to hold above the $4,000 zone against the US Dollar. This attempt by Ethereum failed and ETH price started a fresh correction.
- Ethereum struggled to surpass the $4,050 resistance zone and fell.
- The price is trading below the $4,020 and the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $3,980 on the hourly chart of ETH/USD.
- The pair must stay above $3,900 to start a fresh increase in the near term.
Ethereum Price Corrects Drop
Popular altcoin Ethereum struggled to gain strength above the $4,020 and $4,050 resistance levels. So much so that ETH even rallied above the $4,050 level and the 100 hourly simple moving average.
However, there was no upside continuation above $4,075. Therefore, a high was formed in Ethereum near $4,075 and the price started a downside correction. With the correction, there was a break below the $4,000 support level in ETH price. So much so that the popular altcoin declined below the 23.6% Fib retracement level of the upward move from the $3,750 low to $4,075 high.
However, Ethereum is currently trading below $4,020 and the 100 hourly simple moving average. Considering the critical levels to watch in Ethereum, an initial resistance on the upside is near the $3,980 level. There is also a key contracting triangle forming with resistance near $3,980 on the hourly chart of ETH/USD .
The next major resistance is forming near the $4,020 level. A clear upside break above the $4,020 level could push the price higher in the near term. The next stop for the bulls could be $4,080, above which the price could rise to $4,200.
Any further gains in Ethereum could push the price higher towards the $4,250 levels.
More Drops in ETH
However, if the mentioned situations do not materialize and Ethereum fails to start a fresh increase above the $4,000 level, it could continue to move lower. Looking at the levels to watch in this case, the first support is near the $3,940 level, while the first key support is forming near the $3,920 level.
Therefore, a downside break below the $3,920 and $3,900 levels could start a fresh decline in the near term.
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level: $3,920
Major Resistance Level: $4,020