Ethereum’s price continues to move away from the mark of 4000, below which it dipped at the end of December. On the last day of December, ETH tried to get back above $3800, but unsuccessfully. The first days of January were more successful for Ethereum and helped it get back above the mark of 3800.
However, the movement of the ETH/USD pair is similar to the movement of the BTC/USD. On the 4-hour chart, ETH/USD is also trading in a range that limits movement at 3625 and 4150. At the same time, the pair is also moving in a downtrend, and resistance levels are getting lower. The level of 3800 limits the ETH/USD pair and increases the bearish pressure in this area.
Resistance levels that are all below indicate that bears are starting to sell off every time the bulls try to raise the price of Ethereum. In the current situation, we do not rule out that the bearish trend may continue until the price of Ethereum falls to the area of 3450. A movement below this level will increase the risk of a decline to the area of 3350.On the other hand, it is important for bulls to keep the Ethereum price above 3800 in order to prevent a deep bearish correction at 4 hour chart.
In the current situation, it is worth paying attention to the 3800 level. It plays an important role as long-term holding of the price above this level increases the chances of a return to the area of 4000. If the bears drop the Ethereum price below 3800, we consider the level of 3700 as the closest support for the ETH/USD pair. Further, the pair will receive support in the area of 3680. A breakout of this level will send the ETH/USD pair to the area of 3620.