TA: Ethereum Trims Gains, Why This Level Is The Key For Fresh Increase
Ethereum failed to clear $4,400 and started a fresh decline against the US Dollar. ETH must stay above $4,120 to start a fresh increase in the near term.
Ethereum started a fresh decline from the $4,440 resistance zone.
The price is now trading below $4,250 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $4,360 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend losses if it fails to stay above the $4,120 support zone.
Ethereum Price Show Bearish Signs
Ethereum attempted a recovery wave above the $4,350 resistance zone, similar to bitcoin. ETH price even climbed above the $4,400 level, but it failed to continue higher.
A high was formed near $4,440 and the price started a fresh decline. There was a break below the $4,350 support zone. Besides, there was a break below a key bullish trend line with support near $4,360 on the hourly chart of ETH/USD.
Ether price declined below the 50% Fib retracement level of the upward move from the $3,960 swing low to $4,440 high. It is now trading below $4,250 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
An initial resistance on the upside is near the $4,200 level. The first major resistance is near the $4,320 level and the 100 hourly simple moving average. A close above the $4,300 and $4,320 levels could start a fresh increase in the near term. In the stated case, the price might rise towards the $4,400 level. Any more gains could lift the price towards the next key hurdle at $4,550.
More Losses in ETH?
If ethereum fails to start a fresh increase above the $4,300 level, it could extend losses. An initial support on the downside is near the $4,165 level.
The first key support is now forming near the $4,150 level. It is near the 61.8% Fib retracement level of the upward move from the $3,960 swing low to $4,440 high. A downside break below the $4,150 support might push the price further lower. The next key support is near $4,050, below which the price might slide towards the $4,000 level.
Hourly MACD – The MACD for ETH/USD is losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $4,150
Major Resistance Level – $4,300