Ethereum (ETH) started a fresh decline from $4,750 and dipped below $4,500. The price shows bearish signs and might decline further below $4,000.
Ethereum Price Shows Weakness
After a decent increase, Ethereum faced resistance at $4,750. A high was formed at $4,761 and the price reacted to the downside, like Bitcoin. The price declined below the $4,550 and $4,500 support levels to enter a short-term bearish zone.
More importantly, ETH dipped below a key bullish trend line with support at $4,400 and the 50-day simple moving average. Finally, the price tested the $4,050 support zone.
Ethereum is now consolidating below the $4,250 mark and the 50-day simple moving average. The current price action suggests that the price could recover some losses unless there is no move below $4,000.
On the upside, the price is facing hurdles near $4,220 level and the 23.6% Fib retracement level of the recent decline from the $4,761 swing high to the $4,056 low. The first major resistance sits near the $4,250 zone. If there is a clear move above $4,250 resistance, the price could drift toward $4,350.
The main hurdle for the bulls seems to be forming near the $4,400 zone and the 50-day simple moving average. It also coincides with the 50% Fib retracement level of the recent decline from the $4,761 swing high to the $4,056 low.
A daily close above $4,400 may perhaps open the doors for a fresh uptrend. In the stated case, ETH could rise toward $4,750. Any more gains above $4,750 level could initiate a larger rally toward $4,880 level. The next key stop for the bulls could be near the $5,000 handle.
More Downside In ETH?
If Ethereum fails to start a recovery wave above $4,220 or $4,250, there could be more losses. Immediate support on the downside is $4,120. The first major area of interest for the bulls could be near the $4,050 level.
A clear break and close below $4,050 could spark a sharp decline and larger downside correction. In the stated scenario, Ether might decline toward $3,840. The next key level sits near the $3,680 level. If the bulls fail to protect $3,680, the bears might aim for a move toward $3,500. Any more losses might derail the current uptrend and send ETH to $3,360 in the coming days.
Overall, Ethereum price is consolidating losses above $4,050 and $4,000. If there is no recovery wave above $4,400, the price could soon drop to $3,850 or even $3,680.