Ethereum Broke Key Support But Bulls Can Still Step In: Analysis

Ethereum broke key support level and extended the drop below $3850 support against the US dollar with the ETH price consolidating and trading above the $3700 support zone so let’s read more today in our latest ethereum price news.

Ethereum extended the decline below the $3850 and $3800 support levels with the price now trading below $4000 and the 100 hourly simple moving average. There’s a key bearish trend line that is forming near the $3800 resistance on the hourly chart of the pair. The pair could start a new increase if it clears the $3850 resistance zone and the 100 hourly SMA. Ethereum had a hard time gaining pace above the $4000 and $4050 levels with the coin starting a fresh decline and trading below the $3850 support zone.

ETHUSD tradingview

There was a close below $4000 and the 100 hourly simple moving average with the price dropping below the $3700 support and it traded as low as $3665 with it consolidating the losses above the $700 level. The initial resistance is right near the $3800 level. It is near the 23.6% Fib retracement level from the decline of $4176 swing high to $3665 low. There’s a key bearish trend line forming the resistance near $3800 on the hourly charts of the ETH/USD pair. The next major resistance is close to the $3920 level and it is close to the 50% fib retracement level from the decline of $4176 high to $3665 low. The close above the $3920 level will likely stage an increase in the near term and in the stated case the price could surpass the $4000 resistance in the near term.

ETH daily
ETH 24-hour Price Chart (Source: coingecko)

The next major resistance is close to the $4150 level so if ETH fails to start a new increase above $3920 it could extend its decline with initial support on the downside nearing the $3700. Ethereum broke key support levels and the new ones are now forming near the $3660 level so if there’s a clear break below this support, the price could extend its losses. The next major breakdown support is set at $3550 below which the price could drop towards $3200. The hourly MACD for the pair is gaining pace in the bearish zone with the hourly RSI for the pair being below 50 levels. The major support level is set at $3660 and the resistance one is set at $3920.

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