Ethereum Faces Resistance at $3,840: Will the Price Rebound?
As Ethereum attempted to break above the $3,840 resistance level, the cryptocurrency faced a setback and started a downward correction. Similar to Bitcoin, ETH struggled to surpass the $3,885 mark, leading to a bearish trend in the market.
Despite the initial rally, Ethereum’s price experienced a decline below $3,840, signaling a potential shift in momentum. Additionally, a significant bullish trend line was breached, with support near $3,830, as depicted on the hourly ETH/USD chart.
Price Correction and Support Levels
During the corrective phase, Ethereum dropped below the 50% Fibonacci retracement level of the recent uptrend from the $3,730 low to the $3,885 high. Currently, ETH is trading below $3,840 and the 100-hourly Simple Moving Average, indicating a bearish sentiment in the market.
- A close watch is necessary as the cryptocurrency is hovering near the 61.8% Fibonacci retracement level, which could act as a crucial support area.
- If Ethereum manages to surpass the $3,810 hurdle, it may encounter resistance at $3,840 before aiming for a breakthrough. Subsequently, the next significant resistance lies at $3,920, potentially paving the way for a rally towards $4,000.
- Breaking above $4,000 could trigger further upward movement, with potential tests at $4,080 and $4,200 resistance zones on the horizon.
Potential Downside Risks for Ethereum
In the event that Ethereum fails to breach the $3,840 resistance level, the price may continue to face downward pressure. Initial support is anticipated near $3,765, followed by a crucial support area at $3,720.
- A decisive move below $3,720 could lead to a downtrend towards $3,650, with possible extensions towards the $3,550 level in the short term.
Technical Indicators and Key Levels
When examining the hourly MACD for ETH/USD, the indicator suggests a strengthening bearish trend. Additionally, the hourly RSI has dipped below the 50 zone, indicating a downward momentum in Ethereum’s price action.
- Major Support Level – $3,765
- Major Resistance Level – $3,840
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