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
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

SolidViolet Announcing Forthcoming Exchange to Address Compliance and Liquidity Issues in DeFi and RWAs

– Dinari today announced the upcoming release of a new compliant exchange, SolidViolet. Teased on stage last week at TokenizeThis, Dinari is setting...

Kommunitas Successfully Completes 31st Token Burn, Eliminating Over 424 Million $KOM Tokens to Strengthen Market Position

Strategic Burn Reinforces Token Scarcity and Highlights Commitment to Enhancing Token Value Through Community Engagement : Leading decentralized crowdfunding ecosystem Kommunitas announces its 31st token...

Use quantitative trading to increase your passive income – earn 1,000+ per day

Passive income is one of the best ways to boost your earnings during this upcoming crypto bull market, allowing you to enhance your portfolio...

Pitch Dojo is Going REMOTE! #Global

Get ready to witness the monthly OPL pitch competitions from anywhere in the world! Press Release / Santa Clara, California , Here at OnePiece Labs,...

Playermon Unveils PvP Battles in Exciting Version 3.0 Launch

Location, May 1, 2024 – Playermon, a leading name in the blockchain gaming landscape, has announced the successful launch of its highly anticipated Player-vs-Player... Launches Revolutionary AI-Enhanced Bot Network on Solana Blockchain with Ongoing $SOLV Token Presale

April 15, 2024 – –, an innovative blockchain protocol, has officially announced the launch of its AI-enhanced, bot-driven revenue generation system on...