Ethereum struggles to break above $3,880. According to technical analysis by NewsBTC’s Aayush Jindal, the decline could accelerate if the bulls fail to protect $3,680.
Ethereum Continues to Find Support
Ethereum climbed above $3,880 but there was no upside continuation. A local top was formed near $3,891 before starting a downside correction. Subsequently, BTC declined below the $3,850 and $3,820, and there was a break below the 50% Fib retracement level of the upward move from the $3,681 high to $3,891 high. However, the bulls were active near the $3,750 zone and the 100 hourly simple moving average.
ETH is 61% of the upward move from $3,681 to $3,891. 8 Fib found support near retracement level. There is also a key bullish trend line forming with support near $3,800 on the hourly chart of ETH/USD.
3. Level 880 Looks Important
ETH is now trading above $3,800 and the 100 hourly simple moving average. An immediate resistance is near the $3,850 level. The next major resistance is near the $3,880 level. 3. A clear upside break above the $880 level could pump the price towards $4,000. Any further gains could send the price towards the $4,120 level. The next major resistance is near the $4,250 level.
Will Ethereum Drop?
Jindal says that if Ethereum fails to start a fresh increase above the $3,850 level, it may continue to move lower. An initial support is near the $3,800 level. An initial key support is currently formed near the $3,740 level. A downside break below the $3,740 level could lead the price towards the key $3,680 support in the near term. The next major support is near the $3,600 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is above the 50 level.
- Main Support Level – $3,740
- Main Resistance Level – $3,880