The crypto market is experiencing a pullback after that Bitcoin, the leading cryptocurrency, has hit a new all-time high. However, Ethereum (ETH) has not been spared from this downward trend.
After setting a new annual high of $4,094, the price of Ethereum is moving lower and this has resulted in the price trading below the 100-day moving average (MA) on the 1-hour and 4-hour timeframes, but this is Not so in the daily timeframe.
Will the price continue downward or will it change direction and start moving upwards? At the time of writing, the Ethereum price was trading around $3,360 and had risen by 0.64% in the last 24 hours.
Ethereum indicators and what they suggest
Looking at the chart, technically we can see that a support level of $3,067 and resistance levels of $3,681 and $3,591 have formed respectively. However, further support and resistance may form if the price continues to decline.
4-Hour Moving Average: A technical inspection of the chart in the 4-hour time frame as seen in the image below shows that the price is below the 100-day. moving average. This indicates that the price is on the way down and could potentially go further down.
With the help of 4-hour RSI indicator: Relative Strength Index Indicator (RSI) We can see that the RSI signal line is trending below 50. As seen in the image above, this is a strong indication that the price of Ethereum is falling.
MACD Indicator: Taking a closer look at the MACD indicator over the 4-hour period, it appears that the MACD histogram has crossed below the zero line. Furthermore, both the MACD line and the signal line have crossed the zero line.
This setup indicates that the price is still bearish and is likely to go further down. The image below provides more details:
Possible consequences
If the price of Ethereum If the downside continues and breaks below the support level of $3,067, it may go further down to form a new support level. However, if the price fails to break below this support level, we may see a price reversal and start a new trend upwards. Thus the price is likely to break above the resistance levels of $3,681 and $3,591 respectively and continue its bullish trend.
Featured image from iStock, chart from Tradingview.com
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