Popular cryptocurrency Ethereum slumped below $4,000 following the drop in Bitcoin and extended the slide below the $3,850 support zone against the US Dollar.
Ethereum extended the decline below the $3,850 and $3,800 support levels.
The price is now trading below $4,000 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $3,800 on the hourly chart of ETH/USD.
The pair could start a fresh increase if it clears the $3,850 resistance zone and the 100 hourly SMA.
Ethereum Price Drops Below $4,000
Ethereum, the second largest cryptocurrency by market cap, struggled to gain momentum above the $4,000 and $4,050 levels, but failed. In addition, the drop in Bitcoin started a new decline in ETH and pulled the price below the $3,850 support zone.
Besides, there was a close below $4,000 and the 100 hourly simple moving average. So much so that the price even dropped below the $3,700 support and declined to $3,665.
However, the popular cryptocurrency Ethereum continues to consolidate losses currently above the $3,700 level.
Considering the critical levels to watch in Ethereum, the first resistance is near the $3,800 level, while the next major resistance is near the $3,920 level. There is also a key bearish trend line forming with resistance near $3,800 on the hourly chart of ETH/USD.
A close above the $3,920 level could result in a steady rise in Ethereum price in the near term. In the stated case, the price could even surpass the $4,000 resistance in the near term and continue higher towards the $4,150 level.
More Drops Possible in ETH?
If Ethereum fails to start a fresh increase above the $3,920 level, it could extend its decline further. An initial support on the downside is near the $3,700 level, while a key support is currently forming near the $3,660 level.
Therefore, a clear break below the $3,660 support could push the price down further. The next major support is at $3,550, and a break below this level could push the price down to $3,200.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is below the 50 level.
Major Support Level: $3,660
Major Resistance Level: $3,920
