Ethereum is forming a base - Key levels that could trigger a rally

The price of Ethereum started a new decline below the zone of $4,450. ETH is now consolidating and could aim for a new increase if it manages to surpass $4,380.

• Ethereum is still struggling to recover above the $4,400 zone
• The price is trading below $4,380 and the simple moving average of 100 hours
• There is a key downward trend line forming with resistance at $4,340 on the hourly chart.
• The pair could start a recovery wave if it establishes above $4,350 and $4,380

Ethereum faces obstacles

The price of Ethereum started a wave of recovery after forming a base above the zone of $4,260, similar to Bitcoin. ETH managed to rise above the resistance levels of $4,320 and $4,350 before sellers appeared.

I am concerned that the price did not manage to exceed the level of $4,385. A high was formed at $4,387 and the price started to drop again. There was a movement below the support level of $4,320. The recent low was formed at $4,268 and now the price is consolidating losses above the 23.6% Fibonacci retracement level of the recent drop from the high of $4,387 to the low of $4,268.

The price of Ethereum is now trading below $4,350 and the 100-hour simple moving average. On the upside, it may face resistance near the $4,340 level. Additionally, there is a key descending trendline forming with resistance at $4,340 on the ETH/USD hourly chart.

The next key resistance is near the $4,360 level or the 76.4% Fibonacci retracement level of the recent drop. The first significant resistance is near the $4,385 level. A clear move above this resistance could send the price towards the $4,420 resistance. A bullish breakout above $4,420 could lead to further gains in the upcoming sessions. In that case, Ether could rise towards the $4,500 resistance zone or even $4,550 in the short term.

More drops in ETH?

If Ethereum fails to break through the resistance of $4,340, it could start a new decline. The initial support is near the level of $4,265. The first major support is located near the zone of $4,220.

A clear move below the support of $4,220 could push the price towards the support of $4,200. Any further loss could send the price towards the support level of $4,160 in the short term. The next key support is at $4,120.

Personally, I believe we are at a critical point for ETH. Trading platforms are filled with orders at these key levels, and any breakout could trigger a significant movement in either direction.

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 near the 50 zone.

Main Support Level: $4,260 Main Resistance Level: $4,385

Disclaimer: For informational purposes only. Past performance does not indicate future results.