Ethereum is down 5% after failing to break the $4,800 resistance zone. According to technical analysis by NewsBTC’s Aayush Jindal, if there is a break below $4,350, it could decline further.
Ethereum Deletes Earnings
Ethereum struggled to clear the $4,800 resistance zone, but failed and started a fresh decline. It broke the key support at $4.650 and there was a break below a key bullish trend line with support near $4,600 on the hourly chart of ETH/USD. The pair even traded below the $4,550 support zone. It is now trading near $4,500 and the 100 hourly simple moving average.
ETH formed a bottom near $4,455 and it is currently consolidating losses. An initial resistance on the upside is near the $4,540 level. That’s 23% of the drop from $4,783 to $4,455. Close to 6 Fib retracement level. The first major resistance is near the $4,580 level. The next major resistance is near the $4,620 level. This coincides with the 50% Fib retracement level of the drop from the $4,783 low to $4,455 low.
4. 620 An Important Level
According to Jindal, ETH could start a fresh increase in the near term if it can close above the $4,600 and $4,620 levels. In the stated case, the price could rally to the $4,750 level. Any further gains could push the price higher towards the $4,800 zone in the near term.
Will Ethereum Drop?
Jindal says that if Ethereum fails to start a fresh increase above the $4,600 level, it could start a downside correction. An initial support on the downside is near the $4,500 level. An initial key support is currently formed near the $4,450 level. A downside break below the $4.450 support zone could push the price down further. The main breakout support is $4,350, below which the price could decline sharply.
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 currently well below the 50 level.
- Main Support Level – $4.450
- Main Resistance Level – $4,620
