In the high-stakes world of cryptocurrency, Ethereum has been struggling to stay above the $4,000 mark, raising concerns among investors. The most recent data indicates that Ethereum began a downside correction from the $4,100 zone, and has since been trading below the $3,980 mark and the 100-hourly Simple Moving Average.
The cryptocurrency also witnessed breaks below key bullish trend lines, with support levels falling at $3,940, according to hourly charts of ETH/USD which were fed data via Kraken. Ethereum’s ongoing struggles suggest a possible continuation of its downward trajectory if it cannot maintain support above the $2,820 zone.
The Ethereum price has experienced further setbacks, having difficulty maintaining its position above the $4,000 level, and underperforming in comparison to Bitcoin. Ethereum began a fresh decline, trading below the $4,000 support zone.
The downside movement saw Ethereum dropping below the $3,980 and $3,940 support levels. Moreover, breaks were observed below key bullish trend lines, with support falling at $3,940. The ETH/USD pair even dipped below the $3,850 level, touching a low of $3,837, and is currently in a phase of consolidating its losses.
At present, Ethereum is trading below $3,920 and the 100-hourly Simple Moving Average. The cryptocurrency is facing a significant resistance near the $3,900 level. This resistance level is close to the 23.6% Fibonacci retracement level of the downward move from the $4,107 swing high to the $3,837 low.
The first major resistance is around the $3,970 level or the 50% Fibonacci retracement level of the downward move from the $4,107 swing high to the $3,837 low.
Currently, the main resistance is building near the $4,000 mark. A clear move above this resistance could potentially drive the price toward the $4,120 resistance. If Ethereum breaks past the $4,120 resistance, it could set the stage for further gains in the coming sessions. In that scenario, Ethereum could rise toward the $4,250 resistance zone or even reach $4,320.
Conversely, if Ethereum fails to clear the $3,900 resistance, it might continue its downward movement. Initial support on the downside is near the $3,820 level, with the first major support sitting near the $3,780 zone.
A drop below the $3,780 support might push the price toward the $3,650 support. Further losses could potentially send the price toward the $3,550 support level in the near term, with the next key support level sitting at $3,500.
From a technical standpoint, the MACD for ETH/USD is gaining momentum in the bearish zone, and the RSI for ETH/USD is now below the 50 zone, indicating a bearish trend. The major support level lies at $3,820, with the major resistance level at $3,970.
