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29 March 2024
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Ethereum price looks to retest sub-$3900 after Saturday’s dead cat bounce


  • ETH price turns south again after the rebound faltered above $4100.
  • Symmetrical triangle support on the 4H chart at $3872 appears at risk.
  • A bunch of robust resistance levels keeps the downside more compelling.

Ethereum, the no.2 most dominant cryptocurrency, is trading on a slippery slope this Sunday, reversing a part of Saturday’s impressive rebound from one-week lows of $3835.

In doing so, ETH price is shedding about 1% on the day, trading around mid-$4000, lacking any bullish impetus amid a downbeat mood seen across its crypto rivals.

ETH bears are looking to extend the recent downtrend from six-day highs of $4490 reached last Thursday.  The potential move lower could get exaggerated the weekend’s thin market conditions.

Ethereum’s path of least resistance appears to the downside

Ethereum’s four-hour chart shows that the price is fading its rebound, having faced strong resistance at the bearish 21-Simple Moving Average (SMA) at $4117.

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If ETH bulls overcome the latter, then the recovery could be revived for a test of $4169, the mildly downbeat 50-SMA.

The next relevant upside target is envisioned at the 100-SMA at $4273, above which the horizontal 200-DMA $4350 will be the level to beat for ETH bulls.

ETH/USD: Four-hour chart

The Relative Strength Index (RSI), however, remains below the midline, suggesting that the bearish bias is likely to remain intact going forward.

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Therefore, ETH sellers could look to retest the rising trendline support, now at $3872.

If ETH price yields a decisive break below the latter, then a downside breakout from a week-long symmetrical triangle could be confirmed.

ETH bears will then gear up for a fresh downswing towards the December 4 flash crash lows of $3575.

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