Ethereum price dropped sharply and tested the support zone at $3,580. ETH is currently recovering and faces a lot of headwinds near the $3,740 zone.

• Ethereum started a wave of recovery and climbed above the resistance at $3,660.
• The price is trading below $3,750 and the 100-hour straightforward moving average.
• A key bearish trend line is forming on the hourly chart of ETH/USD (data via Kraken) with resistance near $3,740.
• The pair may begin a fresh upward move unless a close below the $3,640 support occurs.

Ethereum price faces resistance

Ethereum price continued its decline below the support zone at $3,660. Before the bulls emerged, ETH even dropped below $3,600. A low has formed near $3,574 and the price is now correcting losses, just like Bitcoin.

There was a move above the $3,650 and $3,660 levels. The price rose above the 50% Fib retracement level in a move down from a high of $3,838 to a low of $3,574. However, it did not close above the $3,700 level.

Ethereum is currently trading below $3,740 and the 100-hour straightforward moving average. If another rally occurs, ETH may face resistance near the $3,700 level.

The first major resistance is near the $3,740 level. A key bearish trend line is also forming on the ETH/USD hourly chart with resistance near $3,740. The trendline is close to the 61.8% Fib retracement level, which represents a downward move from the high of $3,838 to the low of $3,574.

An upward break above the resistance at $3,740 could send the price higher. The next key resistance is at $3,800, above which the price may gain strength and rise to $3,840. If bulls push Ether above the $3,840 level, the price could move higher and test the $4,000 resistance. Any further gains could push Ether towards the $4,080 resistance zone.

Another ETH drop?

If Ethereum does not break the resistance at $3,740, it may continue to decline. Initial support on the downside is near $3,660. The next major support is near the $3,640 zone.

The main support is $3,580. A clear move below the support at $3,580 could push the price towards $3,500. Larger losses could push the price towards the $3,450 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 – USD 3,640

Major resistance level – $3,740