Ethereum price has started a downward correction from the resistance zone at $3,885. ETH is now back below $3,800 and may continue to fall towards $3,720.

• Ethereum began a pullback after failing to clear the resistance at $3,880.
• The price is trading below $3,840 and the 100-hour plain moving average.
• There was a break below a key uptrend line with support near $3,830 on the ETH/USD hourly chart (data fed via Kraken).
• The pair may begin a recent upward move unless a close below the $3,720 support occurs.

Ethereum prices are falling again

Ethereum price extended its rally above the resistance zone at $3,840. However, ETH struggled to break the $3,885 level and began a downward correction, much like Bitcoin.

There was a drop below the support level at $3,840. Additionally, there was a break below the key uptrend line with support near $3,830 on the ETH/USD hourly chart. The pair fell below the 50% Fib retracement level of the rising wave from a low of $3,730 to a high of $3,885.

Ethereum is currently trading below $3,840 and the 100-hour plain moving average. However, bulls are energetic near the 61.8% Fib retracement level of the up wave from $3,730 low to $3,885 high.

If another rally occurs, ETH may face resistance near the $3,810 level. The first major resistance is near the $3,840 level. An upward break above the resistance at $3,840 could result in a price rally. The next key resistance is at $3,920, above which the price may gain strength and move towards the $4,000 level.

If bulls push Ether above the $4,000 level, the price could move higher and test the resistance at $4,080. Any further gains could push Ether towards the $4,200 resistance zone.

More ETH losses?

If Ethereum does not break the resistance at $3,840, it may continue to decline. Initial support on the downside is near $3,765. The next major support is near the $3,750 zone.

The main support is USD 3,720. A clear move below the support at $3,720 could push the price towards $3,650. Larger losses could push the price towards the $3,550 level in the near future.

Technical indicators

Hourly MACD – MACD for ETH/USD is gaining momentum in a bear zone.

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

Main support level – $3,765

Major resistance level – $3,840