Ethereum reacted to the downside and retested the USD to 4,050. ETH must recover to US$4,250 and above US$4,300 to start a steady wave of recovery.
- Ethereum started a new decline from the resistance zone of $4,350.
- The price is now below $4,250 and the 100-hour simple moving average.
- On the hourly chart of ETH/USD (through data provided by Kraken), a key bearish trend line is formed, and the resistance is near $4,210.
- If it fails to stay above the $4,050 support level, the currency pair may extend its decline.
Ethereum price faces obstacles
Ethereum is trying to show a wave of recovery above the USD 4,300 resistance zone, similar to BitcoinHowever, the price of ETH failed to extend the increase to more than $4,350.
A high was formed near $4,320, and the price started a new decline. Break below the $4,250 support zone. The decline accelerated below the US$4,200 and 100-hour simple moving average. A low was formed near $4,026, and the price is now correcting losses.
The price of Ether returned to the level of 4,100 USD and above 4,120 USD. Its current trading price is close to the 50% Fibonacci retracement level of the recent fall from the volatility high of $4,321 to the low of $4,026.
The initial resistance on the upside is near the $4,200 level. It is close to the 61.8% Fibonacci retracement level of the recent swing from a high of $4,321 to a low of $4,026.The first major resistance is near the $4,250 level, while 100 hour simple moving average.
source: ETHUSD on TradingView.com
Closing prices above the levels of 4,200 US dollars and 4,250 US dollars may start a new rise in the short term. Under the above circumstances, the price may rise to the level of US$4,350. Further increases may push prices up to the next key obstacle of $4,500.
ETH loses more?
If Ethereum fails to start a new rise above $4,250, it may extend its losses. Initial support for the downside is near $4,120.
The first key support level is now formed near $4,050. A break below the $4,050 support level may further push prices down. The next key support level is near $4,000, below this support level, there is a risk of severe damage in the short term.
MACD per hour —— The MACD of ETH/USD is accelerating in the bullish zone.
RSI per hour —— The RSI of ETH/USD is now close to the 50 level.
Main support level – 4,050 USD
Main resistance level – 4,250 USD