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TA: Ethereum Won’t Go Down Quietly: Risk of Bounce Grows

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Ethereum is forming a base near the $3,660 zone against the US Dollar. ETH price is correcting higher, but a move above $3,920 is needed for upside continuation.

  • Ethereum is forming a base near the $3,660 and $3,700 support levels.
  • The price is still trading below $4,000 and the 100 hourly simple moving average.
  • There was a break above a connecting bearish trend line with resistance near $3,800 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh increase if it clears the $3,920 resistance zone and the 100 hourly SMA.
Ethereum Price Forms Base

Ethereum extended decline below the $3,800 level. ETH formed a base near the $3,660 and $3,700 levels, and recently started an upside correction.

There was a move above the $3,800 level. The price cleared the 23.6% Fib retracement level of the recent drop from the $4,175 swing high to $3,665 low. Besides, there was a break above a connecting bearish trend line with resistance near $3,800 on the hourly chart of ETH/USD.

Ether price is now facing resistance near the $3,880 zone. The next major resistance is near the $3,920 level. It is close to the 50% Fib retracement level of the recent drop from the $4,175 swing high to $3,665 low. A clear move above the $3,920 level could stage a steady upward move.

Source: ETHUSD on TradingView.com

The next stop for the bulls could be $4,000. A close above the $4,000 level may possibly spark a strong rally in the coming sessions. In the stated case, it could even rise towards the $4,250 level.

Fresh Decline in ETH?

If ethereum fails to start a fresh increase above the $3,920 level, it could start a fresh decline. An initial support on the downside is near the $3,820 level.

The key support is now forming near the $3,720 level. If there is a clear break below the $3,720 support, the price could extend losses. The next major support is $3,660, below which the bears are likely to aim a test of $3,500. Any more losses might lead the price towards the $3,320 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 above the 50 level.

Major Support Level – $3,720

Major Resistance Level – $3,920


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