in

ETH Dips Below $4K, Can Bulls Defend the Important Level?


Key Support level: $3,969 , $3,500

Key Resistance level: $4,380

Ethereum’s (ETH) failure to break the all-time high early this morning quickly changed the market sentiment, and bears took full control for a brief period.

In the early hours of this morning, Ethereum attempted to break the all-time high, but it was stopped at $4,332 – just $50 below it. Once bulls realized they can’t push the price higher, the action was in the hands of the bears that did not hesitate and pushed it down towards $4,000.

This led to a breakdown of the formation in blue and a broad market correction where most altcoins crashed by double digits. ETH only dropped 9% and has found support above the $4,000 level at the time of this post. This shows buyers have the upper hand at that price level.

img1_eth
Chart by TradingView

ETH Price Technical Indicators

Trading Volume: Significant volume on the breakdown, indicating some leverage longs may have been liquidated in the process. If this continues, ETH may break the support at $3,969.

RSI: The RSI is falling quickly. However, it is not yet in the oversold area on the 4-hour timeframe. This shows that bulls have another chance to defend the local support and prevent further losses.

MACD: The histogram and the moving averages are bearish on the 4-hour timeframe, and on the daily, they are dangerously approaching a bearish cross. Bears need to push ETH below $4,000 and keep the price there if they hope to take control and push it towards the next key support around $3,500.

img2_eth
Chart by TradingView

Bias

Considering the current price action, the short-term bias is neutral with some signs of bearishness. It is too early to turn bearish because ETH managed to maintain its price above $4,000, despite this sharp drop. This shows bulls have not entirely disappeared and interest in ETH under $4,000 remains high.

Short-Term Price Prediction for ETH

ETH can continue to bounce between the all-time high and the support at around $4,000. This range has to be broken before further volatility can return to push ETH in either direction. The indicators show weakness and favor the bears, but bulls have come in force under $4,000. Therefore it is too early to declare a winner that can take ETH to the next levels of support or resistance.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

What do you think?

Vitalik Buterin claims L2 importance in lieu of urgent need for scalability

Vitalik Buterin claims L2 importance in lieu of urgent need for scalability

ASMR: I tell you not to panic sell