Ethereum Begins Its Descent as It Hits the $3,800 Resistance Level

Ethereum Price Long-Term Analysis: Bullish
Ethereum’s (ETH) upward trend has been below $3,900 since May 21 as it hits the $3,800 resistance level. The cryptocurrency price has been fluctuating below the resistance level, indicating a bullish trend. On the upside, if the bulls break the $3,900 barrier, Ether will rise beyond the $4,000 psychological price mark.

During the May 23 rally, a retraced candle body tested the 78.6% Fibonacci retracement line. The retracement predicts that Ether will rise but then reverse at the 1.272 Fibonacci extension, or $4,225.66. In the meantime, ETH/USD is currently valued at $3,722.

Technical indicators:  
Major Resistance Levels – $3, 600, $3,800, $4,000
Major Support Levels – $2.600, $2, 400, $2,200

Ethereum Indicator Analysis 
Since the breakout on May 20, Ether’s price bars have been above the moving average lines. The moving average lines are making a bullish crossover, with the 21-day SMA crossing above the 50-day SMA. This will be a bullish indicator for the cryptocurrency. On the 4-hour chart, the price bar is below the 21-day and above the 50-day SMA. The cryptocurrency will drop while fluctuating between the moving average lines. 

Conclusion  
The largest altcoin is in decline as it hits the $3,800 resistance level. The cryptocurrency price has fallen below the 21-day SMA and retested it. The negative momentum is expected to continue to a low above the 50-day SMA, or $3,440 low. Meanwhile, the cryptocurrency signal is unfavorable as the altcoin begins selling pressure.

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