Ethereum Price Takes Hit, But This Support Could Spark Fresh Increase

Ethereum price is declining from the $4,080 zone. ETH is now approaching a major support at $3,500 where the bulls might take a stand.

• Ethereum started a downside correction from the $3,080 zone.
• The price is trading below $3,800 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $3,850 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could resume its increase if it clears the $3,850 resistance zone.

Ethereum price failed to stay above the $4,000 resistance zone and started a downside correction, like Bitcoin. ETH declined below the $3,920 and $3,850 support levels to enter a short-term bearish zone.

It even spiked below the $3,680 support zone. A low was formed at $3,625 and the price is now consolidating losses. It seems like there is a key bearish trend line forming with resistance at $3,850 on the hourly chart of ETH/USD.

Ethereum price is now trading below $3,800 and the 100-hourly Simple Moving Average. On the upside, immediate resistance is near the $3,740 level or the 23.6% Fib retracement level of the recent decline from the $4,083 swing high to the $3,625 low.

The first major resistance is near the $3,850 level and the trend line. It is close to the 50% Fib retracement level of the recent decline from the $4,083 swing high to the $3,625 low.

Source: ETHUSD on TradingView.com

The next major resistance is near $3,880, above which the price might gain bullish momentum. In the stated case, Ether could rally toward the $4,000 level. If there is a move above the $4,000 resistance, Ethereum could even rise toward the $4,080 resistance. Any more gains might call for a test of $4,150.

If Ethereum fails to clear the $3,850 resistance, it could continue to move down. Initial support on the downside is near the $3,680 level.

The first major support is near the $3,600 zone. The next key support could be the $3,500 zone. A clear move below the $3,500 support might send the price toward $3,350. Any more losses might send the price toward the $3,250 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $3,600

Major Resistance Level – $3,850