Ethereum’s native token, Ether (ETH), recovered above $4,000 but failed near $4,280. The price is now moving lower and might dive if it trades below the $3,820 support.
Ethereum Price Struggles To Stay Above $4,000
In the past few days, Ethereum saw nasty swing moves like Bitcoin. There was a sharp drop to $3,500 before the bulls appeared. The price corrected losses and climbed above the $4,000 resistance zone.
There was a move above the 50% Fib retracement level of the key decline from the $4,752 swing high to the $3,500 low. However, the bears remained active near the $4,280 level.
Ethereum is trading well below $4,200 and the 50-day simple moving average. A key contracting triangle is forming with support at $3,900 on the daily chart. The last two daily candles suggest an increase in selling pressure below $4,200.
If ETH fails to start a recovery wave above $4,150 or $4,200, there could be more losses. Immediate support on the downside is $3,950. The first major area of interest for the bulls could be near the $3,900 level and the triangle’s trend line.
A clear break and close below $3,900 could spark a sharp decline and larger downside correction. In the stated scenario, Ether might decline toward $3,800. The next key level sits near the $3,650 level. If the bulls fail to protect $3,650, the bears might aim for a move toward $3,500. Any more losses might derail the current uptrend and send ETH to $3,250 in the coming weeks.
Another Increase In ETH?
If the bulls protect $3,900 or $3,800, the price could attempt another increase. On the upside, immediate resistance sits at $4,150 and the triangle’s upper trend line. The first major hurdle sits near the $4,280 zone and the 50-day simple moving average. A close above $4,280 could push Ether further higher.
The primary resistance could be $4,450, and the 76.4% Fib retracement level of the key decline from the $4,752 swing high to the $3,500 low. If there is a clear move above $4,450, the price could drift toward $4,620.
A daily close above $4,620 may open the doors for a fresh uptrend. In the stated case, ETH could even clear $4,750. Any more gains above $4,750 level could initiate a larger rally toward $5,000 level.
Overall, Ethereum price is consolidating losses below $4,200 and $4,280. If there is no close below $3,800, the price could accelerate lower toward $3,650 and then $3,500.