Ethereum saw a significant drop against the US dollar, well over $ 4,000. ETH price is now correcting losses of $ 3,500 but could struggle near $ 4,050 and $ 4,100.
- Ethereum hit the $ 4,375 mark before initiating a downward correction.
- The price fell well below $ 4,000 and the 100 hour simple moving average.
- The ETH / USD hourly chart (data feed via Kraken) broke below a major bullish trendline with support near USD 4,000.
- The pair is correcting higher but is likely to face sellers near $ 4,050 and $ 4,100.
Ethereum price corrects sharply
Ethereum has extended its uptrend above the $ 4,200 level. ETH even traded at a new all-time high near $ 4,375 and recently posted a sharp drop, similar to Bitcoin.
There was a sharp drop below the $ 4,000 level and the 100 hour simple moving average. There was also a break below a major bullish trendline with support near USD 4,000 on the ETH / USD hourly chart. The pair has even surpassed the $ 3,700 support level.
A low is being formed near $ 3,525 and is now correcting higher. It rebounded above the $ 3,700 pivot level. There was a break above the 23.6% fib retracement level of the recent sharp decline from the swing high of $ 4,384 to the swing low of $ 3,525.
Source: ETHUSD on TradingView.com
The price attempted to rebound above the $ 4,000 level. The 50% fib retracement level of the recent sharp decline from the swing high of $ 4,384 to the swing low of $ 3,525 is also facing hurdles. The bulls face hurdles near the $ 4,050 level and the 100-hour simple moving average.
A sharp break above the $ 4,000 level could open the doors for a steady rise. The next major resistance is near the $ 4,100 level, above which the price is likely to accelerate towards the $ 4,400 level.
New decline in ETH?
If Ethereum doesn’t stay higher than the USD 4,050 and USD 4,100 resistance levels, another downward correction could occur. Initial downside support is near the $ 3,820 level.
The first major support is near the USD 3,750 level. The main support is now forming near the USD 3,700 level. If there is a downside break below the $ 3,700 zone, the price could fall towards the $ 3,500 support.
Hourly MACD – – The MACD for ETH / USD is struggling to get into the bullish zone.
Hourly RSI – – The RSI for ETH / USD is now below the 50 level.
Main support tier – $ 3,770
Main Resistance Level – $ 4,100