Ethereum’s attempt to recover failed and started a new decline. According to technical analysis by NewsBTC’s Aayush Jindal, ETH needs to stay above the $4,120 level to start a fresh rise in the short term.
Ethereum Gives Bearish Signals
Ethereum also attempted a recovery similar to Bitcoin, but failed. ETH even climbed above the $4,400 level but failed to continue higher. A local top was formed near $4.440 and it started a fresh decline from there.
4. There was a break below the $350 support zone. Besides, there was a break below a key bullish trend line with support near $4,360 on the hourly chart of ETH/USD. ETH settled below the 50% Fib retracement level of the upward move from the $3,960 low to $4,440 high.
Initial resistance on the upside is near the $4,200 level. The first major resistance is near the $4,320 level and the 100 hourly simple moving average. A close above the $4,300 and $4,320 levels could start a fresh increase in the near term. In the stated case, the price could rise to the $4,400 level. Any further gains could push the price higher towards the next key hurdle at $4,550.
Ethereum Drops More?
According to Jindal, if Ethereum fails to start a fresh increase above the $4,300 level, it could increase losses. An initial support on the downside is near the $4.165 level. An initial key support is currently formed near the $4,150 level. This is 61% of the upward move from $3,960 to $4,440. Close to 8 Fib retracement level. 4. A downside break below the $150 support could push the price down further. The next key support is near $4,050, below which the price could decline towards the $4,000 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is currently well below the 50 level.
- Main Support Level – $4.150
- Main Resistance Level – $4,300
