Ethereum (ETH) started a downside correction below $4,500. The price is now consolidating above a key uptrend support at $4,000.
Ethereum Price Shows Signs of Weakness
In the last analysis, we saw the start of a downside correction in Ethereum from the new all-time high at $4,958. The price dipped below the $4,800 and $4,650 support levels, like Bitcoin. The bears even pushed the price below the $4,500 support.
There was a clear drop below a connecting bullish trend line with support at $4,400 on the daily chart. Besides, the price settled below the 23.6% Fib retracement level of the upward move from the $3,362 swing low to the $4,958 high.
Ethereum is now consolidating above the $4,150 mark and the 50-day simple moving average. There is also another bullish trend line in place with support at $4,100 on the daily chart.
The current price action suggests that the price is forming a base above $4,150 and might attempt a fresh increase. If ETH stays above the trend line, there might be a fresh increase. On the upside, the price is facing hurdles near $4,550 level.
The first major resistance sits near the $4,620 zone. If there is a clear move above $4,620 resistance, the price could drift toward $4,800. A daily close above $4,800 may perhaps open the doors for a new all-time high and $5,000. Any more gains above $5,000 level could initiate a larger increase toward $5,200 level. The next key stop for the bulls could be near the $5,500 region.
More Losses In ETH?
If Ethereum fails to start a fresh increase above $4,550 or $4,620, there could be more losses. Immediate support on the downside is $4,220. The first major area of interest for the bulls could be near the $4,120 level and the trend line. It is close to the 50% Fib retracement level of the upward move from the $3,362 swing low to the $4,958 high.
The next key level sits near the $4,000 level and the 50-day simple moving average. A daily close below $4,000 might spark a larger correction in Ether. In the stated case, the price could drop and test $3,740. If the bulls fail to protect $3,740, the bears might aim for a move toward $3,500, below which ETH price might even decline and test $3,360 in the coming days.
Overall, Ethereum price is consolidating above $4,220 and $4,150. If the bulls remain active, they could soon aim for a fresh increase above $4,550 and $4,620. If not, there could be more losses toward $4,000.
