The crypto market is experiencing a pullback after Bitcoin, the leading cryptocurrency, has reached a new all-time high. However, Ethereum (ETH) is not left out in this downward movement.
After setting a new yearly high of $4,094, the price of Ethereum has been falling and this has led to price trading below the 100-day moving average (MA) on both the 1-hour and 4-hour time frames, but this is This is not the case in the daily period.
Will the price continue to fall or will it change direction and start rising? At the time of writing, Ethereum price is trading around $3,360 and is up 0.64% in the last 24 hours.
Ethereum indicators and what they suggest
Looking at the chart, technically we can see that a support level of $3,067 and a resistance level of $3,681 and $3,591 were formed respectively. However, there could be more support and resistance created if the price continues to decline.
4-Hour Moving Average: A technical observation of the 4-hour time frame chart, as seen in the image below, reveals that the price is trending below the 100-day range. moving average. This suggests that the price is in a downtrend and could potentially fall further.
4-Hour RSI Indicator: With the help of Relative Strength Index (RSI) Indicator we can see that the RSI signal line is trending below the 50 line. This is a strong indication that the Ethereum price is in a downward trend as seen in the image above.
MACD Indicator: Looking closely at the MACD indicator on the 4-hour time frame, it appears that the MACD histogram has fallen below the zero line. Furthermore, both the MACD line and the signal line crossed below the zero line.
This setup indicates that the price is still falling and there are possibilities that it could still fall. The image below provides more details:
Possible future outcome
If the price of Ethereum continues to descend and breaks below the $3,067 support level, it could fall further to create a new support level. However, if the price does not break below this support level, we could see a price reversal and start a new upward trend. Thus, there could be a possibility that the price could surpass the $3,681 and $3,591 resistance levels respectively and continue its bullish run.
Featured image from iStock, chart from Tradingview.com
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