Ethereum Trims Gains, Here’s What Could Trigger Larger Decline

Ethereum traded to a new all-time high above $4,200 before correcting lower against the US Dollar. ETH price is now trading well below $4,000, with a few bearish signs.

Ethereum extended its rally above $4,000 and it traded to a new all-time high near $4,215.
The price is now correcting below $4,000 and testing the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $3,980 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to continue lower towards the $3,600 and $3,500 support levels.

Ethereum Price Corrects Lower
Ethereum extended its upward move after it broke the $4,000 resistance zone. ETH price even cleared the $4,150 resistance and $4,200. It traded to a new all-time high near $4,215 before starting a sharp downside correction.
There was a break below the $4,100 and $4,000 support levels. Ether declined heavily below $4,000 and the 100 hourly simple moving average. There was also a break below a key bullish trend line with support near $3,980 on the hourly chart of ETH/USD.
The pair spiked below the $3,600 support on Kraken and it traded as low as $3,501. It is now recovering losses and trading above the $3,800 level. There was a break above the 23.6% Fib retracement level of the recent drop from the $4,213 high to $3,501 low.

Source: ETHUSD on TradingView.com
On the upside, the price is facing hurdles near the $3,850 and $3,900 levels. The 50% Fib retracement level of the recent drop from the $4,213 high to $3,501 low is also near $3,860. The main resistance sits at $3,940, above which the price is likely to climb steadily towards the recent all-time high. An intermediate resistance could be near the $4,120 level.
Dips Limited in ETH?
If Ethereum fails to continue higher towards $4,000, it could start another downside correction. An initial support on the downside is near the $3,750 level.
The first key support is near the $3,680 level. The main support is now forming near the $3,600 level. If there is a downside break below the $3,600 zone, the pair could dive towards the $3,300 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is well below the 50 level.
Major Support Level – $3,680
Major Resistance Level – $3,950

Ora Goodwin
Ora Goodwin
I am a well-known and respected author in the cryptocurrency field. I have been writing about Bitcoin and other digital currencies for over 5 years, and my work has appeared in some of the most respected publications in the space. I am also a regular speaker at industry events, and my insights into the crypto market are highly sought after by both media and investors. In addition to my writing and speaking engagements, I am also an active advisor to several blockchain startups, and I sit on the board of directors for the Blockchain Education Network.

Similar Articles

Most Popular

Why Integrity Matters More Than Profits in Crypto Industry

Known for its dynamic and innovative technology, the crypto industry has seen explosive growth in its user base in recent years. According to Statista,...

5ire Token Set To Launch on Bybit Exchange: December 05

- Brace yourselves for a groundbreaking moment as 5ire prepares to unleash the 5ire token on Bybit Exchange on December 05, igniting a...

Cryptocurrency Unleashed: Haryaneaaleindiankaran’s Social Media Evolution

In a digital era where social media influencers often capture the spotlight, one TikTok sensation has transcended his platform, becoming not just a crypto...

QuickSwap integrates dappOS V2 to provide intent-centric UX

QuickSwap, the top-ranked decentralized exchange in the Polygon ecosystem, has integrated dappOS V2 to provide intent-centric user experience and bring new exciting features. Firstly, dappOS...

The Earn Network Announces Upcoming $EARN Token Public Sale – Starting on November 24, 2023 on Leading Launchpads

The Earn Network, a decentralized platform at the forefront of yield generation in the DeFi sector, is thrilled to announce the public sale of...

CAGA Crypto Launches into the Market with Impressive results: Token Trends and Volume Analysis

CAGA Crypto Launched into the Market with Impressive Results and significantly surged in price just a day after its listing.  At its listing,...

Stader Labs integrates dappOS V2 to offer intent-centric UX

Singapore, — The innovative staking platform Stader Labs has integrated dappOS V2 to offer intent-centric user experience and new powerful features.  dappOS unified account...

Chappyz Announces Token Listing on Tier-1 Exchanges After Raising Over $1M During IDO

The platform's token, $CHAPZ, is set to go live on Bitget and Gate.io on Monday, November 13, 12 pm UTC. (London, United Kingdom, November...