Ethereum is showing signs of a bearish trend below the $3,840 support level. If it drops below $3,700, we might see a stronger downward movement. Let’s dive into the details and see what might be coming next for Ethereum.

Current Price Movement

Ethereum’s price recently fell and touched the $3,700 zone. It is now trading below the crucial $3,840 level and the 100-hourly Simple Moving Average (SMA). A break below a key bullish trend line at $3,780 on the hourly chart of ETH/USD indicates a bearish trend.

The price tried to increase but couldn’t go past the $3,850 resistance zone. It also failed to clear the 50% Fibonacci retracement level of the recent downward move from the $3,958 high to the $3,702 low. Unlike Bitcoin, Ethereum faced a rejection pattern below $3,800, causing the price to dip below $3,780.

Key Levels to Watch

If Ethereum attempts another increase, it might face resistance near the $3,800 level. The first major resistance is at $3,840. If it breaks above this level, the price might rise higher, targeting the next key resistance at $3,900. This level coincides with the 76.4% Fibonacci retracement of the downward move from $3,958 to $3,702. Beyond this, Ethereum could aim for the $4,000 level.

Should the bulls manage to push Ethereum above $4,000, the price could rise further, testing the $4,080 resistance. If the bullish momentum continues, we might even see Ethereum targeting the $4,220 resistance zone.

Potential for More Losses

However, if Ethereum fails to break the $3,840 resistance, it might start another downward trend. The initial support on the downside is near $3,730. The next major support is at $3,700. A clear move below this level could push the price towards $3,660. If the bearish trend continues, Ethereum might drop further to the $3,550 support level in the near term.

Technical Indicators

• Hourly MACD: The MACD for ETH/USD is gaining momentum in the bearish zone, indicating further potential downside.
• Hourly RSI: The RSI for ETH/USD is currently below the 50 zone, suggesting that the sellers are in control.

Conclusion

Ethereum’s current price movement suggests a potential short-term downtrend if it breaks below the $3,700 support level. Investors should watch the key resistance levels at $3,800 and $3,840 for signs of a bullish reversal. However, if Ethereum fails to hold above these levels, it might face more losses in the coming days.

Keep an eye on the technical indicators and key support and resistance levels to understand the possible future movements of Ethereum. While the market can be unpredictable, understanding these trends can help in making informed decisions.