Ethereum (ETH) is making a base above the $3,850 zone against the US Dollar. The price of the ETH could initiate a fresh increase if there is a clear break above the $4,000 resistance. Further, Ethereum struggles to achieve a pace above the $4,000 resistance zone.
The price is trading below $3,950 and the 100 hourly simple moving average at the time of writing.
There is a crucial bearish trend line producing with resistance near $3,950 on the hourly chart of ETH/USD. Also, this pair could start a new increase if it stays above the $3,850 support zone.
ETH Sound Recovery
In addition, ETH started a sound recovery wave above the $3,750 and $3,800 resistance levels at the time of writing. ETH can even climb off the above level of the $4,000 and the 100 hourly simple moving average.
But the price failed to continue rising above the $4,040 and $4,050 resistance levels. A high was formed near $4,035 before the price started a downside correction. There was a move below the $4,000 and $3,950 support levels.
The Ether price will be traded below the 23.6% Fib retracement level of the upward move from the $3,696 low to $4,035 high. It is now trading below $3,950 and the 100 hourly simple moving average (at the time of publishing).
Furthermore, a quick resistance on the upside is near the $3,950 level. There is also a key bearish trend line forming with resistance near $3,950 on the hourly chart of ETH/USD. The next major resistance is near the $4,000 level. A clear move above the $4,000 level and the recent high could start afresh increase in the near term.
In addition, If ETH fails to start a fresh increase above the $4,000 level, it could continue to move down. Initial support on the downside is near the $3,900 level.