TA: Ethereum Dives Below $4K, Here’s Why ETH Could Struggle In Short-Term

Ethereum started a major decline from well above $4,000 against the US Dollar. ETH price is now correcting losses from $3,500, but it could struggle near $4,050 and $4,100.

Ethereum topped near the $4,375 before staring a downside correction.
The price declined heavily below $4,000 and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $4,000 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is correcting higher, but it is likely to face sellers near $4,050 and $4,100.

Ethereum Price Corrects Sharply
Ethereum extended its upward move above the $4,200 level. ETH even traded to a new all-time high near $4,375 and it recently started a major decline, similar to bitcoin.
There was a sharp decline below the $4,000 level and the 100 hourly simple moving average. There was also a break below a major bullish trend line with support near $4,000 on the hourly chart of ETH/USD. The pair even broke the $3,700 support level.
A low is formed near $3,525 and it is now correcting higher. It recovered above the $3,700 pivot level. There was a break above the 23.6% Fib retracement level of the recent sharp decline from the $4,384 swing high to $3,525 swing low.

Source: ETHUSD on TradingView.com
The price attempted a recovery above the $4,000 level. The 50% Fib retracement level of the recent sharp decline from the $4,384 swing high to $3,525 swing low is also facing hurdles. The bulls are facing hurdles near the $4,050 level and the 100 hourly simple moving average.
A clear break above the $4,000 level could open the doors for a steady increase. The next major resistance is near the $4,100 level, above which the price is likely to accelerate higher towards the $4,400 level.
Fresh Decline in ETH?
If Ethereum fails to continue higher above the $4,050 and $4,100 resistance levels, it could start another downside correction. An initial support on the downside is near the $3,820 level.
The first key support is near the $3,750 level. The main support is now forming near the $3,700 level. If there is a downside break below the $3,700 zone, the price could decline towards the $3,500 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is struggling to move into the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,770
Major Resistance Level – $4,100

bitcoin
Bitcoin (BTC) $ 26,754.17
ethereum
Ethereum (ETH) $ 1,868.95
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 299.86
usd-coin
USD Coin (USDC) $ 1.00
xrp
XRP (XRP) $ 0.533193
staked-ether
Lido Staked Ether (STETH) $ 1,867.66
cardano
Cardano (ADA) $ 0.372618
dogecoin
Dogecoin (DOGE) $ 0.071470
solana
Solana (SOL) $ 21.47
matic-network
Polygon (MATIC) $ 0.886105
tron
TRON (TRX) $ 0.081440
litecoin
Litecoin (LTC) $ 92.39
polkadot
Polkadot (DOT) $ 5.29
binance-usd
Binance USD (BUSD) $ 0.999618
avalanche-2
Avalanche (AVAX) $ 14.83
shiba-inu
Shiba Inu (SHIB) $ 0.000008
dai
Dai (DAI) $ 1.00
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 26,753.17
uniswap
Uniswap (UNI) $ 4.97
leo-token
LEO Token (LEO) $ 3.62
chainlink
Chainlink (LINK) $ 6.37
cosmos
Cosmos Hub (ATOM) $ 10.61
okb
OKB (OKB) $ 45.34
monero
Monero (XMR) $ 145.61
the-open-network
Toncoin (TON) $ 1.73
ethereum-classic
Ethereum Classic (ETC) $ 17.99
stellar
Stellar (XLM) $ 0.090976
bitcoin-cash
Bitcoin Cash (BCH) $ 113.38
internet-computer
Internet Computer (ICP) $ 4.69
true-usd
TrueUSD (TUSD) $ 0.999889
lido-dao
Lido DAO (LDO) $ 2.28
filecoin
Filecoin (FIL) $ 4.62
aptos
Aptos (APT) $ 8.72
quant-network
Quant (QNT) $ 115.12
hedera-hashgraph
Hedera (HBAR) $ 0.050308
crypto-com-chain
Cronos (CRO) $ 0.060802
near
NEAR Protocol (NEAR) $ 1.65
arbitrum
Arbitrum (ARB) $ 1.17
vechain
VeChain (VET) $ 0.019410
apecoin
ApeCoin (APE) $ 3.19
the-sandbox
The Sandbox (SAND) $ 0.610866
the-graph
The Graph (GRT) $ 0.122171
algorand
Algorand (ALGO) $ 0.149625
paxos-standard
Pax Dollar (USDP) $ 0.999779
frax
Frax (FRAX) $ 0.999020
eos
EOS (EOS) $ 0.903605
render-token
Render (RNDR) $ 2.65
decentraland
Decentraland (MANA) $ 0.530025
elrond-erd-2
MultiversX (EGLD) $ 37.28