Ethereum has continued its downward trend, dipping below the $3,800 support level. As the price approaches the $3,720 support, it remains unclear whether the slide will halt or if ETH is on a rollercoaster ride.
The decline in Ethereum’s price was triggered by its failure to sustain above the $3,880 zone. Currently, ETH is trading below both the $3,880 level and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, a significant bearish trend line has formed with resistance at $3,800.
If the $3,720 support is breached, Ethereum’s downward movement may persist. The bears will likely target the next major support at $3,625 or the 76.4% Fib retracement level from the $3,630 swing low to the $3,974 high. Further losses could push the price towards the $3,550 level, and a break below that may lead to a drop to $3,500 in the near future.
However, if Ethereum manages to break above the $3,800 resistance, it could see a fresh increase in price. The first major resistance lies near $3,840, followed by $3,900 and $3,940. A clear move above $3,940 might propel the price towards $4,000, and additional gains could lead Ether towards the $4,080 resistance zone.
Currently, the hourly MACD for ETH/USD is gaining momentum in the bearish zone, while the hourly RSI is below the 50 level, indicating a downward trend. The $3,720 support level is critical, and the $3,800 resistance level will play a significant role in determining Ethereum’s short-term direction.