Ethereum price rallied toward $3,850 before crashing. ETH followed Bitcoin, but the bulls are now active near the $3,350 support zone.

• Ethereum traded to a new multi-month high above $3,800 before crashing.
• The price is trading near $3,500 and the 100-hourly Simple Moving Average.
• There was a break below a key bullish trend line with support at $3,620 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could resume its increase if it clears the $3,600 resistance zone.

Ethereum Price Takes Major Hit

Ethereum price extended its rally above the $3,650 level, like Bitcoin. BTC surged and even traded to a new all-time high above $69,000. ETH also cleared the $3,800 level before the bears appeared.

There was a strong bearish reaction from the $3,827 high. The price crashed over $500 and traded toward the $3,200 support. There was a break below a key bullish trend line with support at $3,620 on the hourly chart of ETH/USD.

A low was formed at $3,211 and the price is now attempting a fresh increase. There was a move above the $3,500 level. The price climbed above the 50% Fib retracement level of the downward move from the $3,827 swing high to the $3,211 low. Ethereum is now trading near $3,500 and the 100-hourly Simple Moving Average.

Immediate resistance on the upside is near the $3,550 level. The first major resistance is near the $3,600 level or the 61.8% Fib retracement level of the downward move from the $3,827 swing high to the $3,211 low.

Source: ETHUSD on TradingView.com

The next major resistance is near $3,680, above which the price might gain bullish momentum.  The next stop for the bulls could be near the $3,820 level. If there is a move above the $3,820 resistance, Ether could even rally toward the $3,950 resistance. Any more gains might call for a test of $4,000.

More Losses In ETH?

If Ethereum fails to clear the $3,600 resistance, it could start another downside correction. Initial support on the downside is near the $3,440 level.

The first major support is near the $3,400 zone. The next key support could be the $3,340 zone. A clear move below the $3,340 support might send the price toward $3,220. Any more losses might send the price toward the $3,120 level.

Technical Indicators

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

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

Major Support Level – $3,400

Major Resistance Level – $3,600

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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• Source: https://www.newsbtc.com/analysis/eth/ethereum-price-drops-3200/