Ethereum (ETH) continues its decline and is trading above the $3,700 support zone. NewsBTC's Aayush Jindal gave the following details in his analysis of the leading altcoin Ethereum (ETH).
Ethereum started a fresh decline and traded below the $3,850 support zone. There was a close below $4,000 and the 100 hourly simple moving average. The price even broke below the $3,700 support and a local bottom was formed at $3,665. An initial resistance for ETH is near the $3,800 level. This is near the 23.6% Fib retracement level of the low from the $4,176 low to $3,665 low. There is also a key bearish trend line forming with resistance near $3,800 on the hourly chart of ETH/USD.
The next major resistance is near the $3,920 level. This is close to the 50% Fib retracement level of the drop from the $4,176 low to $3,665 low. A close above the $3,920 level could open up a bullish breakout in the near term. In the stated case, the price may even surpass the $4,000 resistance in the near term. The next major resistance is near the $4,150 level.
According to Jindal, if Ethereum fails to start a fresh rise above the $3,920 level, it could continue its decline. An initial support on the downside is near the $3,700 level. The key support is currently forming near the $3,660 level. If there is a clear break below the $3,660 support, the price could extend losses. The next major breakout support is $3,550, below which the price could decline to $3,200.
- Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is below the 50 level.
- Major Support Level – $3,660
- Main Resistance Level – $3,920