Ethereum Dives Below $4K, Here’s Why ETH Could Struggle In Short-Term

Ethereum started a major decline from well above $4,000 against the US Dollar. ETH price is now correcting losses from $3,500, but it could struggle near $4,050 and $4,100.

Ethereum topped near the $4,375 before staring a downside correction.
The price declined heavily below $4,000 and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $4,000 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is correcting higher, but it is likely to face sellers near $4,050 and $4,100.

Ethereum Price Corrects Sharply
Ethereum extended its upward move above the $4,200 level. ETH even traded to a new all-time high near $4,375 and it recently started a major decline, similar to bitcoin.
There was a sharp decline below the $4,000 level and the 100 hourly simple moving average. There was also a break below a major bullish trend line with support near $4,000 on the hourly chart of ETH/USD. The pair even broke the $3,700 support level.
A low is formed near $3,525 and it is now correcting higher. It recovered above the $3,700 pivot level. There was a break above the 23.6% Fib retracement level of the recent sharp decline from the $4,384 swing high to $3,525 swing low.

Source: ETHUSD on TradingView.com
The price attempted a recovery above the $4,000 level. The 50% Fib retracement level of the recent sharp decline from the $4,384 swing high to $3,525 swing low is also facing hurdles. The bulls are facing hurdles near the $4,050 level and the 100 hourly simple moving average.
A clear break above the $4,000 level could open the doors for a steady increase. The next major resistance is near the $4,100 level, above which the price is likely to accelerate higher towards the $4,400 level.
Fresh Decline in ETH?
If Ethereum fails to continue higher above the $4,050 and $4,100 resistance levels, it could start another downside correction. An initial support on the downside is near the $3,820 level.
The first key support is near the $3,750 level. The main support is now forming near the $3,700 level. If there is a downside break below the $3,700 zone, the price could decline towards the $3,500 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is struggling to move into the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,770
Major Resistance Level – $4,100

Jimmy Steele

I’m known as one of the best Crypto Authors in the market. My work has been featured in numerous publications, including The Wall Street Journal, Forbes, and Barron’s. I’m a regular contributor to CoinDesk and have been a guest on CNBC, Fox Business, and Bloomberg TV.