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Ethereum Signals Bearish Extension: Is a Short-Term Downtrend Coming?

Ethereum price is showing a few bearish signs below the $3,840 support. ETH could gain bearish momentum if there is a clear move below $3,700.

  • Ethereum extended its decline and tested the $3,700 zone.
  • The price is trading below $3,840 and the 100-hourly Simple Moving Average.
  • There was a break below a key bullish trend line with support near $3,780 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh increase unless there is a close below the $3,700 support.

Ethereum Price Dips Again

Ethereum price struggled to start a fresh increase above the $3,850 resistance zone. ETH failed to clear the 50% Fib retracement level of the downward wave from the $3,958 swing high to the $3,702 low.

There was a rejection pattern below the $3,800 level unlike Bitcoin. The price dipped below the $3,780 level. There was a break below a key bullish trend line with support near $3,780 on the hourly chart of ETH/USD. Ethereum is now trading below $3,840 and the 100-hourly Simple Moving Average.

If there is another increase, ETH might face resistance near the $3,800 level. The first major resistance is near the $3,840 level.

An upside break above the $3,840 resistance might send the price higher. The next key resistance sits at $3,900 or the 76.4% Fib retracement level of the downward wave from the $3,958 swing high to the $3,702 low, above which the price might gain traction and rise toward the $4,000 level.

If the bulls push Ether above the $4,000 level, the price might rise and test the $4,080 resistance. Any more gains could send Ether toward the $4,220 resistance zone.

More Losses In ETH?

If Ethereum fails to clear the $3,840 resistance, it could start another decline. Initial support on the downside is near the $3,730 level.

The next major support is near the $3,700 zone. A clear move below the $3,700 support might push the price toward $3,660. Any more losses might send the price toward the $3,550 level in the near term.

Technical Indicators

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

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

Major Support Level – $3,730

Major Resistance Level – $3,840

SOURCE

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