The price of Ethereum dropped below $4,000 for a short time on Thursday, but then quickly recovered. But the danger isn’t over, as ETH must break through critical key resistance.
Key Support levels: $4,000 – $3,850
Key resistance levels: $4,350-$4868 (ATH), – $5,075
ETH’s price currently hovers around $4,350 as resistance, which is the level at which ETH has been unable to close below in the past five trading days.
ETH will likely see another drop to retest $4,000 (September high) if it fails to do so. This support was well defended Thursday by the bulls. The market overall and ETH are facing a crucial moment that will determine the price action for the rest of the month.
Trading Volume: High volumes were observed both after the collapse below $4,000 and immediately following its recovery. This shows that the critical support level is where equilibrium exists between market forces.
RSI: Both the daily and 4-hour RSI are declining. Unless bulls push ETH prices above $4,350 (daily close) it is unlikely that the RSI will turn bullish in the near future.
MACD: The MACD for the daily timeframe is still bearish. Although the MACD histogram has seen higher lows due to the strong showing of strength from bulls at key support, it is still too early for us to be excited. The trend remains bearish until the MACD moving averages make a bullish crossing.
Due to current price action and technical indicators, the bias for ETH has been short-term bearish. This bias could change if bulls keep defending well the $4,000 key support.
Forecast of ETH’s Short-Term Prices
Three days ago, Ethereum experienced a momentary weakness but it recovered quickly and performed better than Bitcoin (ETH/BTC).
The price is currently trying to climb above $4,350 as the key resistance. If this fails, expect ETH to retesting $4K in the next few days. If ETH prices rise above this support, bulls will have a greater chance of regaining control of price action and anticipating a new ATH of $5K.
Marla Brooks – Financial Analysis
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