Ethereum continued to decline similarly to Bitcoin and even saw below $4,000. According to technical analysis by NewsBTC’s Aayush Jindal, ETH could correct to the upside in the short term.
Ethereum in the Red Zone
Ethereum declined sharply after meeting strong resistance near the $4,350 zone. The bears gained strength for a move below the $4,200 support and the 100 hourly simple moving average.
ETH even declined below the $4,000 level and formed a bottom near $3,958. It is currently consolidating near the $4,000 level. An immediate resistance on the upside is near the $4,050 level. That’s 23% of the drop from $4,343 to $3,958. It corresponds to the 6 Fib tracking level. The next major resistance is near the $4,100 level. There is also a new ascending channel forming with support near $4,000 on the hourly chart of ETH/USD.
The main hurdle is currently forming near the $4,150 zone. This is close to the 50% Fib retracement level of the drop from the $4,343 low to $3,958 low. 4. A break above the $150 level could likely trigger a fresh rally. The next key resistance is near the $4,250 level. Any further gains could push the price towards the $4,350 level in the near term.
Will Ethereum Drop More?
According to Jindal, if Ethereum fails to break above the $4,150 and $4,200 resistance levels, it could continue its decline. An initial support on the downside is near the $4,000 level. The first major support is near the $3,950 level. A clear break below the $3,950 support could lead to more losses. The next major support is near the $3,850 level, below which the price could decline towards the $3,500 level in the near term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is slowly rising towards the 50 level.
- Main Support Level – $4,000
- Main Resistance Level – $4.150