Ethereum price is showing several bearish signs below the $3,840 support level. ETH could gain bearish momentum if it falls clearly below $3,700.
- Ethereum extended its downtrend and tested the $3,700 area.
- The price is trading below $3,840 and the 100-hour simple moving average.
- On the hourly chart of ETH/USD (data feed via Kraken), a break has occurred below a key bullish trendline with support around $3,780.
- Unless the pair closes below the $3,700 support, it could start a new increase.
Ethereum price falls again
Ethereum price struggled to initiate a new rally above the $3,850 resistance zone. ETH failed to clear the 50% Fib retracement level of the bearish wave from the $3,958 swing high to the $3,702 low.
Unlike Bitcoin, there was a rejection pattern below $3,800. The price fell below the $3,780 level. On the hourly chart of ETH/USD, a break has occurred below a key bullish trendline supporting around $3,780. Ethereum is currently trading below $3,840 and the 100-hour simple moving average.
If there is another increase, ETH may face resistance near the $3,800 level. 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 lies at $3,900 or the 76.4% Fib retracement level of the bearish wave from the high of $3,958 to the low of $3,702, above which the price may gain traction towards the $4,000 level.
If bulls push Ethereum above the $4,000 level, the price could move higher and test the $4,080 resistance. Further gains could lead Ether towards the $4,220 resistance zone.
Will there be more losses in ETH?
If Ethereum fails to clear the $3,840 resistance, it could begin another downtrend. Initial support for the downside is near the $3,730 level.
The next major support level is near $3,700. A clear break below the $3,700 support could push the price towards $3,660. More losses could push the price towards the $3,550 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 – $3,730
Key Resistance Level – $3,840