ETH Price Analysis: Ethereum Faces Resistance Near $3,840
As a crypto investor, you witnessed Ethereum’s struggle to initiate a new uptrend above the $3,850 resistance level. Despite this, ETH was unable to surpass the 50% Fib retracement level of the downward movement from the $3,958 high to the $3,702 low.
Rejection Below $3,800
Unlike Bitcoin, Ethereum experienced a rejection pattern below the $3,800 mark, leading to a dip below the $3,780 level. Additionally, a crucial bullish trend line support near $3,780 was breached on the hourly chart of ETH/USD, with the cryptocurrency now trading below $3,840 and the 100-hourly Simple Moving Average.
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- ETH may encounter resistance near $3,800 if another uptrend occurs, with the primary resistance at $3,840.
- A break above $3,840 could propel the price higher towards $3,900 or the 76.4% Fib retracement level, followed by potential gains towards $4,000.
- If buyers push Ether above $4,000, the next target lies at $4,080, with further upside potentially reaching the $4,220 resistance zone.
Possible Bearish Scenario for ETH
In the event that Ethereum fails to surpass the $3,840 resistance level, it may face renewed downward pressure. Initial support is anticipated near $3,730, with the next significant support near the $3,700 mark. A clear breach of this level could lead to a decline towards $3,660, potentially extending losses to the $3,550 area in the short term.
Technical Indicators for Ethereum
- Hourly MACD - The MACD for ETH/USD is exhibiting bearish momentum.
- Hourly RSI - The RSI for ETH/USD has dipped below the 50 level.
Key Levels to Watch:
- Major Support Level - $3,730
- Major Resistance Level - $3,840
Hot Take: Ethereum Struggles to Break Key Resistance
As an avid follower of Ethereum’s price movements, you observed the challenges faced by the cryptocurrency in surpassing the crucial $3,840 resistance level. While there remains potential for an uptrend, caution is advised as the market dynamics continue to evolve.
