Ethereum Dives Sharply – $4,000 Break Sparks Concerns Of Extended Downtrend

Ethereum price started a fresh decline below $4,050. ETH is now struggling and might decline further if it breaks the $3,850 support zone.

• Ethereum failed to extend gains and declined below the $4,000 zone.
• The price is trading below $4,050 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $4,050 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move down if it settles below $3,880 and $3,850.

Ethereum price remained in a bearish zone after it settled below $4,250, like Bitcoin. ETH price declined below the $4,120 and $4,050 support levels.

The bears even pushed the price below $4,000. A low was formed at $3,826 and the price recently started a minor recovery wave. There was a move above the 23.6% Fib retracement level of the downward wave from the $4,275 swing high to the $3,826 low.

However, the bears remained active near the $3,950 resistance zone. Ethereum price is now trading below $4,000 and the 100-hourly Simple Moving Average. Besides, there is a key bearish trend line forming with resistance at $4,050 on the hourly chart of ETH/USD.

On the upside, the price could face resistance near the $4,000 level. The next key resistance is near the $4,050 level or the 50% Fib retracement level of the downward wave from the $4,275 swing high to the $3,826 low. The first major resistance is near the $4,120 level. A clear move above the $4,120 resistance might send the price toward the $4,150 resistance and the trend line.

An upside break above the $4,250 region might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,320 resistance zone or even $4,350 in the near term.

If Ethereum fails to clear the $4,050 resistance, it could start a fresh decline. Initial support on the downside is near the $3,880 level. The first major support sits near the $3,820 zone.

A clear move below the $3,820 support might push the price toward the $3,750 support. Any more losses might send the price toward the $3,720 region in the near term. The next key support sits at $3,650.

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 zone.

Major Support Level – $3,820

Major Resistance Level – $4,050