Ethereum recovery could disappear soon if ETH does not exceed $ 4k

Ethereum is forming a base above the $ 3,850 zone against the US Dollar. ETH price could start a new rally if there is a clear break above the $ 4,000 resistance.

  • Ethereum is struggling to gain pace above the $ 4,000 resistance zone.
  • The price is trading below $ 3,950 and the 100 hourly simple moving average.
  • A key downtrend line is forming with resistance near $ 3,950 on the hourly chart of ETH / USD (data feed via Kraken).
  • The pair could start a new rally if it sustains above the $ 3,850 support zone.

Ethereum price remains stable

Ethereum started a steady recovery wave above the $ 3,750 and $ 3,800 resistance levels. ETH even surpassed the $ 4,000 level and the 100 hourly simple moving average.

However, the price was unable to continue higher above the $ 4,040 and $ 4,050 resistance levels. A high was formed near $ 4,035 before the price began a downward correction. There was a move below the $ 4,000 and $ 3,950 support levels.

Ether price traded below the 23.6% Fib retracement level of the up move from the low of $ 3,696 to the high of $ 4,035. It is now trading below $ 3,950 and the 100 hourly simple moving average.

An immediate resistance on the upside is near the $ 3,950 level. A key downtrend line is also forming with resistance near $ 3,950 on the hourly chart of ETH / USD. The next major resistance is near the $ 4,000 level. A clear move above the $ 4,000 level and the recent high could start a new rise in the near term.

Ethereum Price

Source: ETHUSD on TradingView.com

The next stop for the bulls could be $ 4,100. A close above the $ 4.0 level could possibly trigger a move towards the $ 4,250 level.

More losses in ETH?

If ethereum does not initiate a new rise above the $ 4,000 level, it could continue to decline. An initial support on the downside is near the $ 3,900 level.

Key support is now forming near the $ 3,850 level. It is close to the 50% Fib retracement level of the up move from the $ 3,696 low to $ 4,035 high. If there is a clear break below the $ 3,850 support, the price could extend the losses. The next major support is at $ 3,700.

Technical indicators

MACD per hourThe MACD for ETH / USD is slowly losing pace in the bullish zone.

RSI per hourThe RSI for ETH / USD is now near the 50 level.

Major Support Level – $ 3,850

Major Resistance Level – $ 4,000

Source: https://www.newsbtc.com/analysis/eth/ethereum-recovery-fade-4k/

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