Ethereum fell to $ 3,889 after the drop in Bitcoin yesterday. According to technical analysis by NewsBTC’s Aayush Jindal, Ethereum may rally but the upside may be limited around $4,050 and $4,110:
- Ethereum extended its decline below the $4,100 and $4,000 support levels.
- Price is currently trading below $4.100 and the 100 hourly simple moving average.
- If there is a break below $3,900 in the near term, the pair may continue its decline.
There was a break below a key ascending channel with support near $4.150 on the hourly chart of ETH/USD (data from Kraken).
Ethereum May Increase Losses
Ethereum started a decline from $4,300 yesterday with the market drop. ETH failed to stay above the $4.120 and $4.100 support levels and extended its decline below $4,000, entering a bearish zone like Bitcoin. There was also a close below the $4,000 level and the 100 hourly simple moving average. Besides, there was a break below a key ascending channel with support near $4,150 on the hourly chart of ETH/USD. The price spiked below the $3,920 level and settled as low as $3,889.
Ethereum price is currently consolidating losses above the $3,900 level. ETH is 23% of the downside move from $4.313 to $3,889. It is trading above the 6 Fib retracement level. An immediate resistance on the upside is near the $4,010 level and a falling channel on the same chart.
Will Ethereum Rise?
The next major resistance is near the $4,100 level. This is near the 50% Fib retracement level of the downside move from the $4,313 low to $3,889 low. A break above the $4.100 level could push the price above the $4,200 level in the near term. Any further gains could lead the price towards the $4,320 level.
Is It Falling More?
Jindal says that if Ethereum fails to break above the $4,050 and $4,100 resistance levels, it could continue to decline. An initial support on the downside is near the $3,950 level. The first major support is near the $3,920 level. The main support is near the $3,900 level. More bearish assets could lead the $3,800 support. The next major support for the bulls is near the $3,720 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is still below the 50 level.
- Main Support Level – $3,900
- Main Resistance Level – 4. $100
