Ethereum Price Falls Short Above $4,000: Will Bulls Try Again?

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Ethereum’s Battle with the $4,000 Resistance

The Ethereum market has encountered significant challenges in its attempts to remain above the crucial $4,000 mark. Despite earlier gains, ETH is currently undergoing a downside correction, placing it at risk of further declines. The digital asset has been unable to sustain its momentum above the $3,820 support zone, raising concerns among investors and traders alike.

Current Market Observations

Initial Decline: Ethereum commenced a downward correction from the $4,100 zone.

Trading Below Key Levels: The price is now trading below $3,980 and the 100-hourly Simple Moving Average, indicating weakening bullish sentiment.

Trend Line Break: A breach below a vital bullish trend line at $3,940 has been observed on the ETH/USD hourly chart, sourced from Kraken.

Potential for Further Decline: The cryptocurrency may continue its downward trajectory if it fails to hold above the $3,820 support zone.

Ethereum Price Faces Repeated Setbacks

Ethereum’s struggle to surpass and maintain the $4,000 threshold has been evident as it lags behind Bitcoin’s performance. The digital currency has initiated a fresh downward movement, causing it to dip below the $4,000 support area. This decline was marked by movement below the $3,980 and $3,940 support levels, alongside the break of a crucial bullish trend line. The price even dropped further, reaching a low of $3,837, and is currently in a phase of loss consolidation.

Resistance and Potential Upward Movement

Currently, Ethereum is trading beneath the $3,920 level, as well as the 100-hourly Simple Moving Average. On the upside, resistance is emerging near the $3,900 mark, aligning closely with the 23.6% Fibonacci retracement level of the recent downward movement from the $4,107 swing high to the $3,837 low.

The initial significant resistance level is situated near $3,970, correlating with the 50% Fibonacci retracement level of the aforementioned downward move. Should Ethereum manage to clear this resistance, it could pave the way for an ascent toward the primary resistance at $4,000. A decisive breakthrough above this level may trigger a rally towards $4,120, and potentially extend gains to the $4,250 or even $4,320 resistance zones in future sessions.

Potential for Further Losses in Ethereum

In the event that Ethereum is unable to overcome the $3,900 resistance, it faces the risk of continued downside movement. The initial support on this downward path is located near the $3,820 level, with the first substantial support found around the $3,780 zone.

Should a clear breach occur below the $3,780 support, it could drive the price towards the $3,650 support level. Additional losses may result in a decline to the $3,550 support level in the near term, with the next critical support resting at $3,500.