Ethereum is struggling to gain pace above the $4,300 zone against the US Dollar. ETH price is correcting gains, but it might find support near $4,000.
- Ethereum corrected lower below the $4,220 and $4,200 support levels.
- The price is now trading below $4,300 and the 100 hourly simple moving average.
- There was a break below a key bullish trend line with support near $4,350 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it clears the key $4,300 resistance zone.
Ethereum Price Remains Supported
Ethereum struggled to gain pace above the $4,320 and $4,350 levels. ETH started a downside correction and traded below the $4,300 support zone.
There was a close below $4,300 and the 100 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near $4,350 on the hourly chart of ETH/USD. The pair traded below the 50% Fib retracement level of the upward wave from the $3,900 swing low to $4,450 swing high.
It is now showing a few bearish signs below the $4,200 level. An initial resistance on the upside is near the $4,180 level. The first major resistance is near the $4,220 level.
Source: ETHUSD on TradingView.com
The next major hurdle is near the $4,250 level. A clear break and close above the $4,250 level could stage a steady increase in the near term. In the stated case, the price even surpass the $4,300 resistance in the near term. The next major resistance is near the $4,450 level.
Dips Limited in ETH?
If ethereum fails to start a fresh increase above the $4,250 level, it could extend its downside correction. An initial support on the downside is near the $4,080 level. The key support is now forming near the $4,040 level.
The 76.4% Fib retracement level of the upward wave from the $3,900 swing low to $4,450 swing high is also near the $4,040 support zone. If there is a clear break below the $4,040 support, the price could extend losses. The next major breakdown support is $4,000, below which the price could decline towards $3,800.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is below the 50 level.
Major Support Level – $4,040
Major Resistance Level – $4,250
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Author: Aayush Jindal