Ethereum Recent Gains in Danger – Could We See Another Drop?

Ethereum price started a fresh decline below the $4,650 zone. ETH is now showing bearish signs and might gain bearish momentum if it drops below $4,340.

• Ethereum is still struggling to settle above the $4,500 zone.
• The price is trading below $4,500 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $4,460 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could extend losses and dive if there is a close below $4,340 in the near term.

Ethereum Price Dips Again

Ethereum price started a recovery wave after it tested the $4,260 zone, like Bitcoin. ETH price was able to climb above the $4,320 and $4,350 resistance levels.

The price surpassed the 50% Fib retracement level of the key decline from the $4,660 swing high to the $4,261 low. However, the bears remained active near the $4,480 resistance zone. There were two attempts, but the bulls failed to gain strength to clear $4,500.

The 61.8% Fib retracement level of the key decline from the $4,660 swing high to the $4,261 low is acting as a barrier. The price reacted to the downside below $4,450.

Ethereum price is now trading below $4,450 and the 100-hourly Simple Moving Average. Besides, there is a key bearish trend line forming with resistance at $4,460 on the hourly chart of ETH/USD. On the upside, the price could face resistance near the $4,450 level. The next key resistance is near the $4,480 level. The first major resistance is near the $4,500 level.

A clear move above the $4,500 resistance might send the price toward the $4,565 resistance. An upside break above the $4,565 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,650 resistance zone or even $4,720 in the near term.

More Losses In ETH?

If Ethereum fails to clear the $4,500 resistance, it could continue to move down. Initial support on the downside is near the $4,375 level. The first major support sits near the $4,340 zone.

A clear move below the $4,340 support might push the price toward the $4,320 support. Any more losses might send the price toward the $4,260 support level in the near term. The next key support sits at $4,150.

Technical Indicators

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

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

Major Support Level – $4,340

Major Resistance Level – $4,500