The recent price movement of Ethereum has been quite tumultuous, with the cryptocurrency experiencing a pullback after reaching a new all-time high. Despite initially setting a new yearly high of $4,094, Ethereum has since been on a downward trend, causing its price to trade below the 100-day Moving Average in both the 1-hour and 4-hour timeframes. The question on everyone’s mind is whether this downward trajectory will continue or if the price will reverse and start moving upward. As of the time of writing, Ethereum was trading around $3,360, showing a slight increase of 0.64% in the last 24 hours.
Looking at the technical aspects of Ethereum’s price chart, it is evident that a support level of $3,067 and resistance levels of $3,681 and $3,591 have been established. However, there is a possibility of more support and resistance levels being created if the price continues to decline. Analyzing the 4-hour timeframe, it is clear that the price is trending below the 100-day moving average, indicating a bearish trend with potential for further downward movement.
Examining the Relative Strength Index (RSI) indicator in the 4-hour timeframe reveals that the RSI signal line is below the 50 line, signaling a downward trend in Ethereum’s price. Additionally, the Moving Average Convergence Divergence (MACD) indicator shows that the MACD histogram has dropped below the zero line, with both the MACD line and the signal line crossing below it. This setup strongly suggests that the price is currently bearish and may continue moving downward.
If Ethereum’s price continues to decline and breaks below the support level of $3,067, there is a high likelihood of further downward movement to establish a new support level. However, should the price fail to breach this support level, a reversal could occur, potentially signaling a new upward trend. In this scenario, the price could break above the resistance levels of $3,681 and $3,591, allowing for a continuation of its bullish run.
Ethereum’s price movement in the current market conditions is uncertain, with indications pointing towards a bearish trend and potential for further downward movement. Traders and investors are advised to conduct their own research and analysis before making any investment decisions, as the cryptocurrency market is inherently volatile and risky. It is essential to use caution and take calculated risks when navigating the ever-changing landscape of digital assets.