Ethereum Price Dives – Can Bulls Step In Before More Damage Is Done?

[Ben Graham]

Ethereum price started a fresh decline below $4,550. ETH is now consolidating and might decline further if it breaks the $4,250 support zone.

• Ethereum failed to extend gains and declined below the $4,550 zone.
• The price is trading below $4,450 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $4,450 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it settles above $4,400 and $4,450.

Ethereum Price Dips Sharply

Ethereum price failed to continue higher above the $4,650 zone and started a fresh decline, like Bitcoin. ETH price declined below the $4,600 and $4,550 support levels.

The bears even pushed the price below $4,420. A low was formed at $4,264 and the price is now consolidating losses and is well below the 23.6% Fib retracement level of the downward wave from the $4,637 swing high to the $4,264 low.

Ethereum price is now trading below $4,400 and the 100-hourly Simple Moving Average. On the upside, the price could face resistance near the $4,350 level. The next key resistance is near the $4,400 level.

The first major resistance is near the $4,450 level. Besides, there is a key bearish trend line forming with resistance at $4,450 on the hourly chart of ETH/USD. A clear move above the $4,450 resistance might send the price toward the $4,500 resistance or the 61.8% Fib retracement level of the downward wave from the $4,637 swing high to the $4,264 low.

An upside break above the $4,500 region might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,550 resistance zone or even $4,620 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $4,350 resistance, it could start a fresh decline. Initial support on the downside is near the $4,250 level. The first major support sits near the $4,220 zone.

A clear move below the $4,220 support might push the price toward the $4,150 support. Any more losses might send the price toward the $4,120 region in the near term. The next key support sits at $4,050.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $4,250

Major Resistance Level – $4,350