Recently, Ethereum experienced a downside correction from the $3,885 resistance zone, causing the price to drop below $3,800. This correction was initiated after the cryptocurrency failed to clear the $3,880 resistance level. As a result, Ethereum is now trading below $3,840 and the 100-hourly Simple Moving Average. Additionally, a key bullish trend line with support near $3,830 was broken on the hourly chart of ETH/USD.
Despite the downside correction, Ethereum did manage to extend its increase above the $3,840 resistance zone. However, the failure to clear the $3,885 resistance level led to a pullback. The price is currently trading below the 100-hourly Simple Moving Average, indicating a bearish outlook. In order to resume an upward trend, Ethereum will need to overcome the $3,810 and $3,840 resistance levels. A successful break above $3,840 could pave the way for a potential rally towards $3,920 and even $4,000.
On the downside, Ethereum faces initial support near $3,765, followed by a major support zone around $3,750. The critical support level is at $3,720, and a clear move below this level could trigger further downside movement towards $3,650 and potentially $3,550 in the near term. The hourly MACD for ETH/USD is currently in the bearish zone, indicating increasing selling pressure. Additionally, the hourly RSI has dropped below the 50 level, signaling a weakening momentum for Ethereum.
Ethereum’s recent price movement suggests a struggle to maintain bullish momentum above key resistance levels. The downside correction has brought the price back below $3,800, and further declines could be expected if critical support levels are breached. On the other hand, a successful break above the $3,840 resistance level could lead to a renewed upward trend towards $4,000 and beyond. Traders and investors should closely monitor Ethereum’s price action in the coming days to assess the likelihood of a breakout in either direction.
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