4 June 2024
Ethereum price is showing a few bearish signs below the $3,840 support. ETH could gain bearish momentum if there is a clear move below $3,700.
Ethereum extended its decline and tested the $3,700 zone.
The price is trading below $3,840 and the 100-hourly Simple Moving Average.
There was a break below a key bullish trend line with support near $3,780 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase unless there is a close below the $3,700 support.
Ethereum Price Dips Again
Ethereum price struggled to start a fresh increase above the $3,850 resistance zone. ETH failed to clear the 50% Fib retracement level of the downward wave from the $3,958 swing high to the $3,702 low.
There was a rejection pattern below the $3,800 level unlike Bitcoin. The price dipped below the $3,780 level. There was a break below a key bullish trend line with support near $3,780 on the hourly chart of ETH/USD. Ethereum is now trading below $3,840 and the 100-hourly Simple Moving Average.
If there is another increase, ETH might face resistance near the $3,800 level. The first major resistance is near the $3,840 level.
An upside break above the $3,840 resistance might send the price higher. The next key resistance sits at $3,900 or the 76.4% Fib retracement level of the downward wave from the $3,958 swing high to the $3,702 low, above which the price might gain traction and rise toward the $4,000 level.
If the bulls push Ether above the $4,000 level, the price might rise and test the $4,080 resistance. Any more gains could send Ether toward the $4,220 resistance zone.
More Losses In ETH?
If Ethereum fails to clear the $3,840 resistance, it could start another decline. Initial support on the downside is near the $3,730 level.
The next major support is near the $3,700 zone. A clear move below the $3,700 support might push the price toward $3,660. Any more losses might send the price toward the $3,550 level in the near term.
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 – $3,730
Major Resistance Level – $3,840