Chart by TradingView
Key Support levels: $4,175; $3,850
Key Resistance levels: $4,350; $5,075
ETH’s price finds itself in a downtrend and this appears to be momentarily stopped by the key support level at $4,175. However the bears are putting extra pressure on price and if the bulls fail to hold here, it may lead to a breakdown again. The next key support level sits at $3,850.
The resistance is found at $4,350 and has so far stopped any attempts from ETH to move higher.
Trading Volume: The volume has decreased substantially compared to the drop from two days ago. This gives some hope that bulls may have a chance to reverse the downtrend, but it is still too early as of now.
RSI: While the 4-hour RSI bounced up from the oversold area, it is now curving back down and may enter the oversold territory again before recovery can take place.
MACD: The MACD on the daily timeframe shows no signal of a reversal and the trend remains bearish. The moving averages, as well as the histogram, are both declining each day. Even on lower timeframes, ETH has failed to sustain any significant reversal in the downtrend.
The short-term bias for ETH is bearish and the price is currently retesting the support at $4,175. Should this level fail to hold, ETH can fall to the next key support under $4,000. While the volume is low today, any break of support might bring back bears in force and push the price down again.
Ethereum looks weak, particularly on lower timeframes, therefore, it is unlikely ETH can push any higher than its current price in the immediate short term.
It’s important for ETH bulls to continue holding the price above $4,175 because if it fails, bears are likely to attempt a push lower to the aforementioned levels. The macro structure, however, remains bullish and corrections of the kind are completely normal.
