Ethereum price dropped significantly, testing the $3,580 support area. ETH is currently recovering and faces many obstacles near $3,740.
- Ethereum began a recovery and broke above the $3,660 resistance level.
- The price is trading below $3,750 and the 100-hour simple moving average.
- The hourly chart of ETH/USD (data feed via Kraken) shows a major bearish trendline forming with resistance near $3,740.
- As long as the pair fails to close below the $3,640 support, the pair could start a new uptrend.
Ethereum price faces resistance
Ethereum price extended its decline below the $3,660 support level. ETH also fell below $3,600 before starting an upward trend. A low was made near $3,574 and the price is now correcting losses like Bitcoin.
There was a move above the $3,650 and $3,660 levels. The price crossed the 50% Fib retracement level moving downward from the $3,838 swing high to the $3,574 low. However, there was no close above the $3,700 level.
Ethereum is currently trading below $3,740 and the 100-hour simple moving average. If there is another increase, ETH may face resistance near the $3,700 level.
The first major resistance is near the $3,740 level. Additionally, on the hourly chart of ETH/USD, there is a major bearish trend line forming with resistance near $3,740. The trend line is close to the 61.8% Fib retracement level moving down from the $3,838 swing high to the $3,574 low.
An upside reversal above the $3,740 resistance could push the price higher. The next major resistance level is $3,800, above which the price may gain traction and advance towards the $3,840 level. If bulls push Ethereum above the $3,840 level, the price could move higher and test the $4,000 resistance. Further gains could push Ether towards the $4,080 resistance zone.
Another decline in ETH?
If Ethereum fails to clear the $3,740 resistance, it may continue to fall. Initial support on the downside is near $3,660. The next major support level is near $3,640.
The main support level is $3,580. A clear break below the $3,580 support could push the price towards $3,500. More losses could push the price towards the $3,450 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 – $3,640
Key Resistance Level – $3,740