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.
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.
MACD per hour – The MACD for ETH / USD is slowly losing pace in the bullish zone.
RSI per hour – The RSI for ETH / USD is now near the 50 level.
Major Support Level – $ 3,850
Major Resistance Level – $ 4,000