Chart by TradingView
Key Support levels: $3,700
Key Resistance levels: $4,000, $4,435, $4,868 (ATH)
The battle between buyers and sellers is ongoing at the key $4,000 level. So far, the sellers managed to push the price below it after a short incursion from bulls. At the time of this post, the $4,000 level is acting as a resistance, and if the buyers manage to turn it into support, then ETH can rally further.
Trading Volume: Volume disappeared after ETH moved above $4,000. This shows weakness on the buyers’ side and explains why prices fell back under this crucial level.
RSI: The daily RSI is falling in line with the price. It did manage to make a higher high. It is important for bulls to step up, or this would turn out to be a short-term bounce only.
MACD: The daily MACD completed a bullish cross yesterday. This is good news for the bulls, but the momentum and volatility were low during this crossover, putting the strength of the move in doubt. Buyers have to step up, otherwise, ETH can fall again.
The bias for ETH is neutral. The battle at the $4K level will be decisive.
ETH seems keen to pass the key resistance at $4K and turn it into support but lacks the strength to do so now. All recent attempts were rejected, and considering the low volume, it is hard to be confident in this price action.
