Unfortunately, ETH fell to $3,470 on Bitstamp following the collapse of crypto markets. This was Saturday morning UTC. The good news is that ETH recovered most of the losses and reclaimed the critical support level of $4K.
Key Support levels: $4,000
Key Resistance levels: $4.284, $4.500, $4.868 (ATH).
Although the market crashed on Saturday morning saw large liquidations of leveraged traders who were overexposed, Ethereum was able to recover almost completely as of this writing.
This signal is important to the market as it shows that ETH is firmly against Bitcoin. Bitcoin appears weaker after this weekend’s crash. Although ETH was able to quickly recover and reclaim $4K, this cannot be said for Bitcoin.
ETH has just reached a new high of 0.085 BTC on the ETH/BTC chart. This is the highest level since May 2018. Ethereum is currently trading at 0.15 BTC. This is the all-time high against Bitcoin. Ethereum seems well on its way to that goal after surpassing the key resistance of 0.080 BTC and forming a horizontal triangle pattern (as seen on the following chart).
To maintain bullish price action against the USD, ETH must remain above the $4,000 key support. Resistance levels at $4,284, 4,500, and $48,68 (ATH) are likely.
TradingView Chart ETH/BTC
Trading Volume: The volume peak was seen during the crash. The recovery candle saw much less volume. This is why it’s important to be cautious, especially when the price reaches $4,284. This means that the volume is not favorable to the bulls at the moment.
RSI: Despite the crash, the daily RSI reached a higher level. This is a sign that there is strength and a chance for a quick recovery.
MACD: MACD was bullish prior to the crash but it quickly lost its bullishness due to the collapse. The moving averages fell and the histogram moved into negative territory. The MACD will likely revert to bullish territory if ETH remains above $4,000
Chart by TradingView
The bias for ETH remains neutral. It is still too early to be bullish. Traders should be cautious, as any rejection at resistance levels could lead to an excessive reaction from the market.
Forecast of ETH’s Short-Term Prices
The bulls are pleased with Ethereum’s rapid recovery above $4,000 psychological level. If they can sustain this, confidence in ETH will rise and create momentum for a rally. ETH cannot close a daily candle below 4000. ETH must not close a daily candle below $4,000.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.