In recent days, the cryptocurrency market has seen a pullback following Bitcoin’s surge to a new all-time high. Ethereum (ETH) has also been affected by this downward movement after reaching a new yearly high of $4,094. Currently, the price of Ethereum is trading around $3,360, up by 0.64% in the last 24 hours. The question on many investors’ minds is whether the price will continue its downward trend or if it will reverse and start moving upward.
When we look at the chart, we can see that Ethereum has formed a support level of $3,067 and resistance levels of $3,681 and $3,591. However, if the price continues to move downward, there could be new support and resistance levels created. In the 4-hour timeframe, the price is trending below the 100-day moving average, indicating a potential further downward movement. The Relative Strength Index (RSI) is also below the 50 line, suggesting a downward trend. Additionally, the MACD histogram has dropped below the zero line, with both the MACD line and the signal line crossing below the zero line. This setup points towards a bearish momentum, with possibilities of further downward movement.
If the price of Ethereum breaks below the support level of $3,067, we could see it moving further downward to establish a new support level. On the other hand, if the price fails to break below this support level, there could be a potential reversal in price direction, leading to an upward trend. In this scenario, Ethereum could break above the resistance levels of $3,681 and $3,591, continuing its bullish run.
The current state of Ethereum’s price movement is uncertain, with indicators pointing towards a bearish trend. Investors are advised to conduct their own research and exercise caution when making investment decisions in such a volatile market. While there is potential for a price reversal and an upward movement, it is important to consider the risks involved in cryptocurrency trading. As always, do your due diligence and use the information provided here at your own risk.
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