Recently, Ethereum price experienced a downside correction starting from the $3,885 resistance zone. This correction has caused ETH to drop below $3,800 and there is a possibility that it might continue to slide towards $3,720.
Ethereum faced a pullback after failing to clear the $3,880 resistance level. Currently, the price is below $3,840 and also trading under the 100-hourly Simple Moving Average. Furthermore, there was a significant break below a key bullish trend line with support near $3,830 on the hourly chart of ETH/USD.
Although Ethereum price managed to extend its increase above the $3,840 resistance zone, it struggled to surpass the $3,885 level. This struggle led to a downside correction similar to Bitcoin. The price declined below $3,840 and also broke a key bullish trend line with support around $3,830 on the hourly chart of ETH/USD.
At the moment, Ethereum is trading below $3,840 and the 100-hourly Simple Moving Average. Despite this, the bulls are actively defending near the 61.8% Fib retracement level from the recent upward wave. If there is another upward movement, ETH might face resistance around the $3,810 level and the first major resistance is at $3,840.
On the downside, if Ethereum fails to clear the $3,840 resistance, it could potentially continue moving downwards. The initial support level on the downside is near $3,765, followed by the $3,750 zone. The critical support level is at $3,720, and a clear break below that support might push the price towards $3,650. Further losses could lead to a drop to the $3,550 level in the near future.
Technical Indicators
Looking at the technical indicators, the MACD for ETH/USD is gaining momentum in the bearish zone. Additionally, the RSI for ETH/USD is currently below the 50 zone. These indicators suggest that there might be some bearish pressure on Ethereum price in the near term.
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