Ethereum’s price is showing signs of a potential bearish extension as it struggles to maintain support above $3,840. If there is a clear move below $3,700, ETH could gain bearish momentum in the short-term.
Currently, Ethereum has experienced a decline and tested the $3,700 zone. The price is trading below $3,840 and the 100-hourly Simple Moving Average. Additionally, there was a break below a key bullish trend line with support near $3,780 on the hourly chart of ETH/USD.
If the price manages to start a fresh increase, it may face resistance near $3,800 and $3,840. However, an upside break above the $3,840 resistance could lead to further gains, with the next key resistance level at $3,900. A breakthrough this level might provide the necessary traction for Ethereum to rise towards $4,000.
On the contrary, if the $3,840 resistance remains unbroken, Ethereum might undergo another decline. The initial support level on the downside is near $3,730, followed by a major support level around $3,700. A move below this support level could potentially push the price further towards $3,660 and even $3,550 in the near term.
Looking at the technical indicators, the MACD for ETH/USD is gaining momentum in the bearish zone, indicating a potential downward trend. Additionally, the RSI for ETH/USD is now below the 50 zone, further reinforcing the possibility of a short-term downtrend.
In summary, Ethereum’s price is currently displaying bearish signals, and a short-term downtrend may be on the horizon if the $3,700 support is breached. Traders should closely monitor the $3,840 resistance level for any potential breakthrough in either direction.