Ethereum also started a sharp decline like Bitcoin, increasing its loss in the last 24 hours to 8%. According to technical analysis by NewsBTC’s Aayush Jindal, if there is a clear break below $4,200, ETH could continue its decline:
- Ethereum started a fresh decline from the $4,700 and $4,750 resistance levels.
- Price is currently trading below $4,500 and the 100 hourly simple moving average.
- The pair could extend losses if the bears gain strength below $4,200 in the near term.
There was a break below an ascending channel with support near $4,620 on the hourly chart of ETH/USD (data from Kraken).
Ethereum Increases Losses
Like Bitcoin, Ethereum started a steep decline and the bears gained strength for a move below the $4,500 support and the 100 hourly simple moving average. It declined below the $4,400 level and the price settled as low as $4,261. An immediate upside resistance for ETH, which is currently consolidating its losses, is near the $4,380 level.
4. The 23.6% Fib retracement level of the drop from the $769 high to $4,261 low is also near the $4,380 low. The next major resistance is near the $4,400 level. The main barrier is currently forming near the $4,500 zone.
4. The $500 Level Is Important
The $4,500 resistance is also near the 50% Fib retracement level of the decline from the $4,769 high to $4,261 low. A break above the $4,500 level could likely trigger a fresh rally. The next key resistance is near the $4,650 level. Any further gains could push the price towards the $4,800 level in the near term.
Is Ethereum Falling More?
According to Jindal, Ethereum could continue its decline if it fails to rise above the $4,380 and $4,400 resistance levels. An initial support on the downside is near the $4,280 level. The first major support is near the $4,250 level. 4. A clear break below the $250 support could lead to additional losses. The next major support is near the $4,150 level. Any further decline could lead the price towards the $4,050 support. The next major support for the bulls is near the $4,000 level.
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 currently in the oversold zone and well below the 40 level.
- Main Support Level – $4.250
- Main Resistance Level – $4,500