Can Ethereum Price Maintain This Support and Spark a New Increase?

As a seasoned crypto investor with several years of experience under my belt, I’ve seen Ethereum (ETH) price fluctuations more times than I can count. And right now, it looks like ETH is taking a dip below the $3,880 support level, which isn’t unexpected given the recent market trends.

Ethereum‘s price has begun to decline after failing to hold above the $3,880 mark. Currently, Ethereum is attempting to find support at the $3,760 level, with potential for further gains following.

    Ethereum started another downside correction below the $3,880 zone.
    The price is trading above $3,750 and the 100-hourly Simple Moving Average.
    There is a connecting bearish trend line forming with resistance at $3,880 on the hourly chart of ETH/USD (data feed via Kraken).
    The pair could restart its increase unless there is a move below the $3,760 support.

Ethereum Price Dips To Support

The Ethereum price did not reach or surpass the $4,000 mark for potential resistance, instead, it initiated a decline similar to Bitcoin. Ethereum’s value dropped beneath the support thresholds of $3,920 and $3,880.

I analyzed the price action and noticed a notable drop below the 50% Fibonacci retracement level of the upward wave from $3,631 to $3,972. Subsequently, the price dipped beneath the $3,800 mark. However, I observed that the bulls were quite active near the $3,760 support zone.

The cost of Ethereum has continued to surpass the 61.8% Fibonacci retracement mark in its upward trend from the $3,631 trough to the $3,972 peak. Currently, Ethereum’s price hovers above $3,750 and lies above the 100-hour moving average.

Close by, the Ethereum-to-dollar exchange rate encounters significant resistance around $3,880 on the hourly chart. A developing bearish trend line also offers resistance at this level. The first noteworthy barrier to surmount lies at $3,920. Clearing this hurdle could potentially push the price upwards.

Can Ethereum Price Maintain This Support and Spark a New Increase?

The Ether price is expected to encounter its next significant hurdle at around $3,950. If this level is breached, the price may pick up momentum and move upward towards $4,000. Should the price manage to surpass the $4,000 mark, it could continue rising, potentially reaching the resistance at $4,080. Further gains might push Ether’s price into the $4,150 resistance area.

More Losses In ETH?

Should Ethereum be unable to surpass the $3,880 barrier, it may head southward instead. A noteworthy support lies around the $3,800 mark in its descent.

As an analyst, I would interpret the current market situation as follows: The next significant level of support lies around the $3,760 mark. A decisive breakdown below this support could potentially lead to further declines towards the $3,720 zone. Should the price continue to weaken beyond that point, we may see it testing the nearby resistance at $3,630.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

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

Major Support Level – $3,760

Major Resistance Level – $3,880

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2024-05-29 04:34