Ethereum (ETH) failed to recover above $4,300 and trimmed gains. The price is now moving lower and might dive if it trades below the $3,680 support.
After a sharp decline to $3,500, Ethereum attempted a fresh increase like Bitcoin. The price climbed above $4,000 but failed to stay in a positive zone. A high was formed at $4,295 and the price trimmed most gains.
The recent low was formed at $3,683 and the price is now consolidating losses. Recently, there was a move above the 50% Fib retracement level of the drop from the $4,295 swing high to the $3,683 low. However, the bears remained active near the $4,120 level.
Ethereum is now trading well below $4,200 and the 50-day simple moving average. There is also a key contracting triangle forming with support at $3,750 on the daily chart. The last two daily candles suggest an increase in selling pressure below $4,000.
If ETH fails to start a recovery wave above $3,880 or $3,950, there could be more losses. Immediate support on the downside is $3,750 and the triangle’s trend line. The first major area of interest for the bulls could be near the $3,680 level.
A clear break and close below $3,680 could spark a sharp decline and larger bearish wave. In the stated scenario, Ether might decline toward $3,500. The next key level sits near the $3,200 level. If the bulls fail to protect $3,200, the bears might aim for a move toward $3,000. Any more losses might derail the current uptrend and send ETH to $2,850 in the coming weeks.
If the bulls protect $3,750 or $3,680, the price could attempt another increase. On the upside, immediate resistance sits at $4,000 and the triangle’s upper trend line. The first major hurdle sits near the $4,150 zone and the 76.4% Fib retracement level of the drop from the $4,295 swing high to the $3,683 low.
The main resistance could be $4,300 and the 50-day simple moving average. If there is a clear move above $4,300, the price could drift toward $4,500. A daily close above $4,500 may perhaps open the doors for a fresh uptrend. In the stated case, ETH could even clear $4,750 and test $5,000.
Overall, Ethereum price is consolidating losses below $4,000 and $4,150. If there is no close below $3,680, the price could accelerate lower toward $3,500 and then $3,200.
