Ethereum Price Consolidates Below Resistance — Breakout Or Breakdown Next?

[Redator]

Ethereum price is still struggling to settle above $4,220. ETH is now consolidating in a range and might decline sharply if there is a move below $3,880.

• Ethereum started a recovery wave above the $4,000 and $4,020 levels.
• The price is trading below $4,050 and the 100-hourly Simple Moving Average.
• There is a short-term contracting triangle forming with support at $3,950 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move up if it trades above $4,075.

Ethereum Price Dips To Support

Ethereum price struggled to settle above $4,200 and corrected most gains, like Bitcoin. ETH price declined below the $4,050 and $4,000 levels.

It even tested the $3,940 zone. A low was formed at $3,932 and the price is now consolidating losses. There was a minor increase above the 23.6% Fib retracement level of the recent decline from the $4,216 swing high to the $3,932 low.

Besides, there is a short-term contracting triangle forming with support at $3,950 on the hourly chart of ETH/USD. Ethereum price is now trading below $4,050 and the 100-hourly Simple Moving Average.

On the upside, the price could face resistance near the $4,075 level. The next key resistance is near the $4,150 level and the 76.4% Fib retracement level of the recent decline from the $4,216 swing high to the $3,932 low. The first major resistance is near the $4,200 level.

A clear move above the $4,200 resistance might send the price toward the $4,250 resistance. An upside break above the $4,250 region might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,350 resistance zone or even $4,420 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $4,150 resistance, it could start a fresh decline. Initial support on the downside is near the $3,950 level and the triangle’s trend line. The first major support sits near the $3,880 zone.

A clear move below the $3,880 support might push the price toward the $3,820 support. Any more losses might send the price toward the $3,750 region in the near term. The next key support sits at $3,640.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

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

Major Support Level – $3,950

Major Resistance Level – $4,150