Ethereum (ETH) price has failed to break out of the $4,000 area and is starting to correct previous gains and it may now face downside risks as it struggles to sustain above the $3,820 support area.
Ethereum price corrects downside
Ethereum price started a correction near $4,100 and the price has declined below the $3,980 and $3,940 support levels. Additionally, on the ETH/USD chart, the price broke a key bullish trend line with support at $3,940.
The current price is below $3,920 and the 100 hourly simple moving average, showing weakness in the market. From a technical perspective, ETH is facing resistance near $3,900, which is also close to the 23.6% Fibonacci retracement level of the upward move from the $4,107 high to $3,837 low.
Further Action Risk
If ETH fails to break through the support level of $3,900, it may continue to decline. The initial support level is around $3,820, followed by the support area at $3,780. If it breaks below $3,780, the price may further decline, first towards the $3,650 support area, and may even surpass the critical support levels of $3,550 and $3,500.
If the price of Ethereum can break through the resistance level of $3,900, a significant rebound may occur. The first major resistance level is at $3,970, followed by $4,000. If the resistance level of $4,000 is broken, ETH may retest $4,120, and may even rise further to $4,250 or $4,320.
Technical Indicators
Bottom MACD: The MACD of ETH/USD is currently in the bearish zone, indicating that the market is still under downward pressure.
RSI (Relative Strength Index): The RSI of ETH/USD has fallen below 50, indicating a bearish market sentiment.
Support Levels: $3,820, $3,780, $3,650
Resistance Levels: $3,970, $4,000, $4,120
