The virtual currency market is experiencing a pullback after the major virtual currency, Bitcoin, hit a new all-time high. However, Ethereum (ETH) is not excluded from this downward movement.
After hitting a year-to-date high of $4,094, Ethereum price has been trending lower, with the price trading below the 100-day moving average (MA) on both the 1-hour and 4-hour timeframes, which is Not so with frames.
Will prices continue to fall or will they change direction and start rising? At the time of writing, Ethereum price is trading around $3,360, up 0.64% in the past 24 hours.
Ethereum indicators and their implications
Looking at the chart, we can see that there is technically a support level forming at $3,067 and resistance levels at $3,681 and $3,591, respectively. Nevertheless, if the price continues to fall, more support and resistance may be created.
4-hour moving average: If we observe the chart technically from the 4-hour time frame, we can see that the price is trending below the 100-day moving average, as seen in the image below. This suggests that prices are on a downward trend and may fall further.
4-Hour RSI Indicator: Using the Relative Strength Index indicator (RSI), we can see that the RSI signal line is trending below the 50 line. This is a strong indication that the price of Ethereum is trending down, as seen in the image above.
MACD indicator: If we look closely at the 4-hour MACD indicator, we can see that the MACD histogram is below the zero line. Additionally, both the MACD line and the signal line have fallen below the zero line.
This setup indicates that the price is still bearish and could still fall. Details are shown in the image below.
possible outcomes
If Ethereum price continues to fall and falls below the $3,067 support level, it could fall further and form a new support level. However, if the price fails to break below this support level, we could see a price reversal and start a new uptrend. Therefore, the bullish run may continue as the price breaks above the resistance levels of $3,681 and $3,591, respectively.
