Ethereum (ETH) faced a strong rejection at $4,750. The price is now moving lower and might dive if it trades below the $4,400 support.
Ethereum Price Signals Another Top?
Earlier this month, there was a decent upward movement in Ethereum above $4,000. The price climbed above the $4,400 and $4,500 resistance levels. The price tested $4,750, where it faced a strong rejection.
It seems like the stated resistance at $4,750 acted as a barrier on more than two occasions. The recent rejection could spark a double top pattern if the price stays below $4,750 for a long time. ETH already trimmed some gains like Bitcoin and traded below $4,550. The price dipped below the 23.6% Fib retracement level of the upward move from the $3,832 swing low to the $4,752 high.
Ethereum is now holding the key support at $4,400 and the 50-day simple moving average. There is also a major rising channel forming with support at $4,420 on the daily chart.
If the bulls protect the channel support and the 50-day simple moving average, the price could attempt another increase. On the upside, immediate resistance sits at $4,520. The first major hurdle sits near the $4,550 zone. A close above $4,550 could push Ether further higher.
The main resistance is still $4,750. If there is a clear move above $4,750, the price could drift toward $4,920. A daily close above $4,920 may perhaps open the doors for a fresh uptrend. In the stated case, ETH could even clear $5,000. Any more gains above $5,000 level could initiate a larger rally toward $5,200 level. The next key stop for the bulls could be near the $5,320 level.
Downside Break In ETH?
If Ethereum fails to start a recovery wave above $4,520 or $4,550, there could be more losses. Immediate support on the downside is $4,420. The first major area of interest for the bulls could be near the $4,400 level and the channel’s trend line.
A clear break and close below $4,400 could spark a sharp decline and larger downside correction. In the stated scenario, Ether might decline toward $4,290. The next key level sits near the $4,050 level and the 76.4% Fib retracement level of the upward move from the $3,832 swing low to the $4,752 high.
If the bulls fail to protect $4,050, the bears might aim for a move toward $3,840. Any more losses might derail the current uptrend and send ETH to $3,250 in the coming weeks.
Overall, the Ethereum price is consolidating losses below $4,520 and $4,550. If there is no close below $4,400, the price could accelerate lower toward $4,290 and then $4,050.
