Can Ethereum Price Maintain This Support and Ignite a New Rally?
Ethereum’s price has experienced a dip below the $3,880 support level, leading to a downside correction. However, the cryptocurrency is currently testing the $3,760 support and may be poised for a fresh increase.
Key Points:
– Ethereum underwent a downside correction below the $3,880 zone.
– The price is currently trading above $3,750 and the 100-hourly Simple Moving Average.
– On the hourly chart of ETH/USD, a bearish trend line is forming with resistance at $3,880.
– Unless the price moves below the $3,760 support, there is a potential for an upward movement.
Ethereum Price Dips But Finds Support
Ethereum failed to reach the $4,000 resistance zone and began a downside correction similar to Bitcoin. The price dipped below the $3,920 and $3,880 support levels.
Furthermore, there was a spike below the 50% Fib retracement level of the upward move from a swing low of $3,631 to a high of $3,972. However, the bulls showed their presence near the $3,760 support area.
The price managed to stay above the 61.8% Fib retracement level of the aforementioned upward move. Currently, Ethereum is trading above $3,750 and the 100-hourly Simple Moving Average.
Immediate resistance can be found near the $3,880 level. Additionally, a bearish trend line is forming with resistance at $3,880 on the ETH/USD hourly chart. The first major resistance lies at the $3,920 level. Should the price break above this level, it might witness an upward surge.
The subsequent key resistance sits at $3,950, and a further breakthrough could lead the price towards the $4,000 level. If the $4,000 mark is convincingly surpassed, Ether may rally and test the $4,080 resistance. Additional gains could push it towards the $4,150 resistance zone.
Possibility of Further Losses in ETH?
If Ethereum fails to surpass the $3,880 resistance level, it could continue its downward movement. The initial support on the downside is near the $3,800 level.
The next significant support can be found around $3,760. A clear breakthrough below this level might push the price towards $3,720. Further losses could drive the price closer to the $3,630 level in the near term.
Technical Indicators
The MACD indicator for ETH/USD on the hourly chart is currently showing a loss of momentum in the bearish zone.
Following its downward movement, the RSI indicator for ETH/USD has fallen below the 50 zone.
Key Levels to Watch
Major Support Level: $3,760
Major Resistance Level: $3,880