Ethereum price reinforces bearish option below $4000

• Ethereum’s price pulled back below the $4000 level yesterday. 

Ethereum chart analysis

Ethereum’s price pulled back below the $4000 level yesterday. In that zone, the EMA50 moving average exerted additional pressure on the price from the upper side. This was followed by a bearish consolidation and a drop to the $3720 level. Thus, we are retreating below the EMA200 moving average in the zone around the $3860 level for the first time this week.

First, we get support at the $3720 level, and then, with bullish consolidation, we return to the $3930 level. We tried to hold on up there, but we didn’t have enough strength for that step, and another retreat followed. We fell again below the EMA200 moving average, descending to the $3620 level of support. From that level, we saw an attempt to recover this morning, which was stopped at the $3775 level.

Can Ethereum stop this pullback, or are we headed even lower?

We are forced to turn again to the bearish side, and with a new impulse, we fall to the $3562 support level, forming a new weekly low at that point. We are currently holding around the $3675 level and need to stabilize above $3700 to try to trigger a price recovery.

We then need an impulse and a return to the $3760 resistance level. By crossing above, we form a new high, which gives us hope that we could initiate a stronger bullish consolidation. If we manage to hold above $3800, we have an opportunity to go back to $3900 and test the EMA200 and EMMA50 moving averages. Only by going above them and with their support can we continue on the bullish side.