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 by 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.
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.
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.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
