**Ethereum Price Analysis: ETH Faces Downside Pressure Below $4,000**
Ethereum price started a downside correction after failing to sustain levels above $4,120. ETH has been moving lower, trading below the critical $4,000 mark, and could decline further if it breaks below the $3,880 support level.
The decline began as Ethereum dropped below key support levels at $4,050 and $4,000. Currently, the price is trading below $4,000 as well as the 100-hour Simple Moving Average (SMA), indicating growing bearish momentum. If ETH continues to trade below $3,880, it may face further downside pressure.
### Ethereum Price Dips Further
Following a failure to hold gains, Ethereum started a fresh decline, mirroring Bitcoin’s recent downturn. The price fell below $4,120 and $4,050, entering a bearish zone supported by technical signals.
Notably, ETH moved beneath the 61.8% Fibonacci retracement level of the upward move from the $3,708 swing low to the $4,252 high, signaling potential further losses. Additionally, a bearish trend line with resistance near $4,000 has been forming on the hourly ETH/USD chart.
### Key Resistance Levels to Watch
If Ethereum tries to bounce back, it is likely to face resistance near the $4,000 level and the bearish trend line. The next major resistance appears around $4,030, coinciding with the 100-hour SMA.
A stronger barrier exists near $4,080, and a decisive move above this level could pave the way for a test of the $4,120 resistance. Should ETH manage to break above $4,120, it could gain upward momentum toward the $4,200–$4,220 resistance zone in the near term.
### Potential for Further Losses
On the downside, if Ethereum fails to clear the $4,000 resistance, it may resume its decline. Initial support is near $3,880, followed by a major support zone at $3,840, which also aligns with the 76.4% Fibonacci retracement level of the recent upward move.
A sustained break of the $3,840 support could push ETH toward the $3,750 level, with further losses potentially driving the price down to the $3,700 range. Additional key support levels to watch are $3,650 and $3,620.
### Technical Indicators
– **Hourly MACD:** Currently gaining momentum in the bearish zone, indicating increasing downside pressure.
– **Hourly RSI:** Stands below the 50 level, confirming the bearish sentiment.
### Summary
– **Major Support Levels:** $3,880, $3,840, $3,750, $3,700, $3,650, $3,620
– **Major Resistance Levels:** $4,000, $4,030, $4,080, $4,120, $4,200
Ethereum faces critical resistance near $4,000 and could extend its correction if it fails to breach this level. Traders should closely monitor the support at $3,880 and $3,840 for signs of either a rebound or further declines.
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