Ethereum price extended its downward correction below the $3,800 support level. ETH is currently approaching the $3,720 support and may target a new increase.
- Ethereum extended its downtrend after failing to stay above the $3,880 area.
- The price is trading below $3,880 and the 100-hour simple moving average.
- The hourly chart of ETH/USD (data feed via Kraken) shows a major bearish trendline forming at resistance $3,800.
- A break above the support level of $3,720 could lead to the pair continuing to fall.
Ethereum price falls further
Ethereum price, like Bitcoin, began a downward correction below the $3,880 support zone. ETH fell below the $3,850 and $3,800 support levels to move into near-term bearish territory.
There was also a clear move below the 50% Fib retracement level of the bullish wave from the $3,630 swing low to the $3,974 high. The price finally fell below the $3,780 level. The bears are now targeting a move towards the $3,720 support level.
Ethereum price is currently trading above $3,800 and the 100-hour simple moving average. If there is a fresh increase, ETH may face resistance near the $3,800 level. Additionally, on the hourly chart of ETH/USD, there is a major bearish trendline with resistance forming at $3,800.
The first major resistance is near the $3,840 level. An upside reversal above the $3,840 resistance could push the price higher. The next major resistance level is $3,900, above which the price may gain traction and advance towards the $3,940 level. A clear move above the $3,940 level could push the price higher to test the $4,000 resistance. Further gains could push Ether towards the $4,080 resistance zone.
Will there be more losses in ETH?
If Ethereum fails to clear the $3,800 resistance, it may continue to fall. Initial support on the downside is near the $3,720 level or the 76.4% Fib retracement level of the upward wave from the $3,630 swing low to the $3,974 high.
The next major support level is near the $3,625 area. A clear break below the $3,625 support could push the price towards $3,550. More losses could push the price towards the $3,500 level in the near term.
technical indicators
Hourly MACD – ETH/USD MACD is gaining momentum in bearish territory.
RSI per hour – The RSI for ETH/USD is now below the 50 area.
Key Support Level – $3,720
Key Resistance Level – $3,800