TA: Ethereum Turns Red, Why ETH’s Recovery Could Be Limited

NewsBTC

Ethereum is following a bearish path below $4,100 against the US Dollar. ETH could recover, but upsides might be capped near $4,050 and $4,110.

  • Ethereum extended its decline below the $4,100 and $4,000 support levels.
  • The price is now trading below $4,100 and the 100 hourly simple moving average.
  • There was a break below a crucial ascending channel with support near $4,150 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could extend its decline if there is a break below $3,900 in the near term.

Ethereum Price Could Extend Losses

Ethereum failed to stay above the $4,120 and $4,100 support levels. ETH extended its decline below $4,000 and moved into a bearish zone, like bitcoin.

There was also a close below the $4,000 level and the 100 hourly simple moving average. Besides, there was a break below a crucial ascending channel with support near $4,150 on the hourly chart of ETH/USD. The price spiked below the $3,920 level and traded as low as $3,889.

Ether price is now consolidating losses above the $3,900 level. The price is trading above the 23.6% Fib retracement level of the downward move from the $4,313 swing high to $3,889 low. An immediate resistance on the upside is near the $4,010 level and a declining channel on the same chart.

Source: ETHUSD on TradingView.com

The next major resistance is near the $4,100 level. It is near the 50% Fib retracement level of the downward move from the $4,313 swing high to $3,889 low. A break above the $4,100 level may possibly push the price above the $4,200 level in the near term. Any more gains could lead the price towards the $4,320 level.

More Losses in ETH?

If ethereum fails to recover above the $4,050 and $4,100 resistance levels, it could continue to move down. An initial support on the downside is near the $3,950 level.

The first major support is near the $3,920 level. The main support is near the $3,900 level. Any more downsides could lead the price towards the $3,800 support. The next major support for the bulls is near the $3,720 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is still below the 50 level.

Major Support Level – $3,900

Major Resistance Level – $4,100

via NewsBTC

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