14 March 2024
Ethereum price is struggling above the $4,000 zone. ETH is slowly moving lower and there is a risk of a downside thrust toward the $3,850 support.
Ethereum traded to a new multi-month high above $4,080 before correcting lower.
The price is trading below $4,000 and the 100-hourly Simple Moving Average.
There is a connecting bullish trend line forming with support at $3,965 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could resume its increase if it clears the $4,025 resistance zone.
Ethereum Price Holds Support
Ethereum price extended its increase above the $4,050 level, like Bitcoin. ETH traded to a new multi-month high above $4,080 before there was a downside correction.
The price declined below the $4,000 level. It seems like Ether bulls are struggling to keep the price above $4,000. There was a move below the 23.6% Fib retracement level of the upward move from the $3,830 swing low to the $4,083 high.
Ethereum price is now trading below $3,980 and the 100-hourly Simple Moving Average. However, the bulls are active near the $3,950 zone. There is also a connecting bullish trend line forming with support at $3,965 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the upward move from the $3,830 swing low to the $4,083 high.
If the pair stays above the $3,950 level, it could attempt another increase. Immediate resistance on the upside is near the $4,025 level. The first major resistance is near the $4,050 level. The next major resistance is near $4,085, above which the price might gain bullish momentum.
Source: ETHUSD on TradingView.com
In the stated case, Ether could rally toward the $4,150 level. If there is a move above the $4,150 resistance, Ethereum could even rise toward the $4,250 resistance. Any more gains might call for a test of $4,320.
Downside Break In ETH?
If Ethereum fails to clear the $4,025 resistance, it could start a downside correction. Initial support on the downside is near the $3,950 level.
The first major support is near the $3,880 zone. The next key support could be the $3,830 zone. A clear move below the $3,830 support might send the price toward $3,750. Any more losses might send the price toward the $3,650 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,950
Major Resistance Level – $4,025