Ethereum, like Bitcoin, continued its decline and declined below the $4,250 support. According to technical analysis by NewsBTC’s Aayush Jindal, if ETH fails to break above the $4,250 resistance, it could drag losses below $4,000:
- Ethereum started a fresh decline well above the $4,350 and $4,300 levels.
- Price is currently trading below $4,250 and the 100 hourly simple moving average.
- 4. The pair could decline further if there is a clear break below the $000 support zone.
There is a short term bearish channel forming with resistance near $4,250 on the hourly chart of ETH/USD (data from Kraken).
Ethereum Risks More Losses
Ethereum fell sharply below the $4,300 and $4,250 support levels in its decline, similar to Bitcoin. There was also a break below the $4.120 support. It is now trading below $4,250 and the 100 hourly simple moving average. A bottom was formed near $4,067 and ETH is now consolidating losses. An initial resistance on the upside is near the $4.180 level.
The first major resistance is near the $4,250 level. There is also a short term bearish channel forming with resistance near $4,250 on the hourly chart of ETH/USD. The channel is 23% of the drop from $4,269 to $4,067. Close to 6 Fib retracement level. The next major resistance is near the $4,350 level. The main breakout area could be $4,420. This is close to the 50% Fib retracement level of the decline from the $4,269 high to $4,067 high.
4. The $420 Level Is Important
A close above the $4.420 level could start a fresh increase in the near term. In the indicated case, the price could rise to the $4,600 level. More gains could push the price higher towards the next key hurdle, $4,750.
Will Ethereum Drop More?
According to Jindal, if Ethereum fails to continue higher above the $4,250 and $4,350 resistance levels, it could continue to decline. An initial support on the downside is near the $4,080 level. An initial key support is currently formed near the $4,050 level. A downside break below the $4,050 support could push the price below the $4,000 support. The next key support is near $3,850.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is now close to the 30 level.
- Main Support Level – $4,050
- Main Resistance Level – $4.250