The recent surge in the crypto market has seen Bitcoin reaching new heights, but Ethereum (ETH) has also been on a roller coaster ride. After hitting a yearly high of $4,094, the price of Ethereum has taken a hit and is now trading below the 100-day Moving Average (MA) in both the 1-hour and 4-hour timeframes. The big question on everyone’s mind is whether this downward trend will continue or if there will be a reversal in the near future.
As of the time of writing, Ethereum is trading around $3,360, showing a slight increase of 0.64% in the last 24 hours. Looking at the chart, it is clear that a support level of $3,067 and resistance levels of $3,681 and $3,591 have been established. However, if the price continues to decline, we may see more support and resistance levels being formed.
Analysis of 4-Hour Timeframe Indicators
When analyzing the 4-hour timeframe, the Moving Average indicator shows that the price is currently trending below the 100-day moving average, indicating a downward trend. The Relative Strength Index (RSI) signal line is also below the 50 line, further confirming the bearish sentiment. Additionally, the MACD histogram has dropped below the zero line, with both the MACD line and signal line crossing below as well. These indicators suggest that the price of Ethereum is still in a bearish territory and may continue to move downwards.
If Ethereum breaks below the current support level of $3,067, we may see the price dropping even further to establish a new support level. However, if the support holds strong, there is a possibility of a price reversal and a bullish trend emerging. In such a scenario, Ethereum could break above the resistance levels of $3,681 and $3,591, paving the way for a potential uptrend.
Disclaimer
It is important to note that the information provided in this article is for educational purposes only and should not be taken as financial advice. Investing in cryptocurrencies carries inherent risks, and it is essential to conduct thorough research before making any investment decisions. NewsBTC does not endorse any specific actions related to buying, selling, or holding investments, and all decisions should be made at your own risk.
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