Ethereum price continues downtrend as ETH bears plan another move below $4,000

Ethereum (ETH) price saw bulls paring back losses during the weekend, but the recovery hit a curb from resistance at $4,465. At that point, ETH bears took back control and pushed the price back down towards $4,060 by this morning. Expect bears to continue to dominate as long as no fundamental tailwinds emerge that could change sentiment for the better. 

Ethereum price under siege with no fundamental tailwinds to lift the mood

Ethereum price saw bulls hitting a ceiling over the weekend with a rejection of $4,465. That level was the November 12 low and it saw some solid support in the days after. When ETH finally broke below it, bulls reattempted to get back above, only to find that the support had now turned into resistance, offering bears another level to get short against ETH. 

ETH price now sees bears targeting the support from September 03 at $4,060. This coincides with the 55-day Simple Moving Average, which will provide some additional support. As this level was already breached last week, expect only to see a bit of slowdown in the selling pressure, but a break looks inevitable, opening further downside potential towards $3,687, originating from May 4.

ETH/USD daily chart

With the Relative Strength Index in the neutral zone, expect bears to first make their push lower. The correction may slow  from profit-taking along the way. Expect a complete stop at $3,687, where bulls will want to get in and buy at a discount. Technically, an additional incentive is that the red descending trend line intersects with the historically significant support level at $3,687, making it perfect for a bounce trade.