Ethereum recently experienced a pullback after reaching the $4,093 high, which marked a significant resistance level. The current trading price has dropped below the $4,000 level, indicating some bearish trends. Currently, Ethereum is positioned above $3,920 and is maintaining a position above the 100-hourly Simple Moving Average. The price decline prompted a break below a critical bullish trend line with support at $3,965 on the hourly chart.
Following a period of strength, Ethereum had a commendable rally from the $3,750 support level, successfully pushing past the $4,000 barrier. However, after testing the $4,080 resistance, the price began a correction, moving beneath both the $4,050 and $4,000 levels. This decline also took the price below the 23.6% Fibonacci retracement level associated with the preceding upward move, which originated from a swing low of $3,680.
Currently, Ethereum faces significant resistance around the $3,960 level, with the first major resistance identified near $3,980 and the crucial barrier situated at $4,000. A decisive breakout above this resistance level could propel the price toward $4,080 and potentially further. If such a breakout is achieved, traders may see Ethereum climbing toward resistance zones of $4,150 or even $4,220.
Conversely, if Ethereum struggles to surpass the $4,000 resistance, a further decline may ensue. The immediate support level on this downside is near $3,920, followed closely by a major support point at around $3,880. A breach below this level might lead the price toward the $3,840 support area, with further declines potentially targeting the $3,770 level or even the key support at $3,650.
Technical indicators show that momentum is waning, with the MACD displaying a loss of bullish momentum and the RSI falling below the neutral 50 position, highlighting the pressure on Ethereum ’s price action moving forward.
