Ethereum Corrects But Why Dips Could Be Attractive In Short-Term

Ethereum is correcting gains from $4,121 against the US Dollar. ETH price could start a fresh increase if there is a clear break above the $4,040 resistance.

Ethereum struggled to clear the $4,100 zone and corrected lower.
The price is trading just above $3,950 and the 100 hourly simple moving average.
There was a break below a key rising channel with support near $4,040 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if it stays above the $3,920 support and the 100 hourly SMA.

Ethereum Price Corrects Lower
Ethereum started a steady recovery wave above the $3,850 and $4,000 resistance levels. ETH even climbed above the $4,050 level and the 100 hourly simple moving average.
However, the price failed to continue higher above the $4,080 and $4,100 resistance levels. A high was formed near $4,121 before the price started a downside correction. There was a move below the $4,050 and $4,000 support levels.
There was also a break below a key rising channel with support near $4,040 on the hourly chart of ETH/USD. The pair is now trading just above $3,950 and the 100 hourly simple moving average.
There was a break below the 23.6% Fib retracement level of the upward move from the $3,650 low to $4,121 high. An immediate resistance on the upside is near the $4,040 level. The next major resistance is near the $4,080 level. A clear move above the $4,080 level and the recent higher could start a fresh increase in the near term.

The next stop for the bulls could be $4,120. A close above the $4,120 level may possibly spark a move towards the $4,250 level.
More Losses in ETH?
If ethereum fails to start a fresh increase above the $4,040 level, it could continue to move down. An initial support on the downside is near the $3,950 level.
The key support is now forming near the $3,920 level and the 100 hourly simple moving average. If there is a clear break below the $3,920 support, the price could extend losses. The next major support is $3,885. It is near the 50% Fib retracement level of the upward move from the $3,650 low to $4,121 high.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now near the 50 level.
Major Support Level – $3,920
Major Resistance Level – $4,040