Key Support level: $3,600
Key resistance level: $3,000.
Ethereum has been consolidating over the last few days following a correction to the recent rally that saw the price fall below the $3,900 resistance. ETH fell to $3,600 on Sunday.
Technically, it is unlikely that the price will attempt to push higher than the resistance area until bulls take a firm grip on the support area. This could mean that a more definitive test might be possible. If this is the case, then we might see a breakout above the psychological and technical resistance range of $3,900 to $4,000 and a push towards the all time high.
Chart by TradingView
Volume: Monday saw a spike in volume. The bulls failed to reverse the momentum and failed to break resistance. Once price reaches the key support level, it is important to monitor the volume. An early indicator of a price decline is a strong showing by bulls.
RSI: The RSI on the four-hour timeframe is bearish. It’s important that you remain cautious and watch out for a possible short-term retrace. This price action on the daily timeframe will cause a temporary pullback that should be quickly reversed during the next bounce.
MACD: The MACD histogram is showing lower highs. This is short-term bearish. The bias for ETH remains bullish as long as MACD’s moving averages do not form a bearish crossing, even though it has a bearish histogram.
Chart by TradingView
The ETH bias is bullish for the long-term. The key support level will be retested in the near future. A strong rebound at this level could help ETH return to its historic high.
Short-Term Prediction of ETH Price
Bulls still have a great entry point at $3,600, but this will need to be confirmed by price action once it reaches there. The $3,900 resistance level can push ETH lower until bulls have a firm grip on the market. This would allow ETH to surpass the $4,380 all-time high.
Marla Brooks – Financial Analysis
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