Outside Source
Key Support level: $3,600
Key Resistance level: $3,900
Over the past couple of days, Ethereum has been consolidating following a correction after the most recent rally where the price was rejected at the key resistance of $3,900. On Sunday, ETH’s wicked down almost to the aforementioned support of $3,600.
From a technical standpoint, the price is unlikely to attempt another push above the resistance until the bulls get a firm hold of the support area, meaning that a more definitive retest might be in the cards. If that’s the case, we could then expect a breakout above the important psychological and technical resistance range between $3,900 – $4,000 and push towards the all-time high.
Technical Indicators
Volume: The volume spiked on Monday. However, the bulls were unable to change the momentum, failing to break resistance. It’s important to keep tabs of the volume once price approaches the key support level. A strong show of force from bulls at that time will be a good early signal of the price reversing course.
RSI: On the four h timeframe, the RSI is bearish, therefore it’s important to remain careful and beware of a potential short-term retrace. On the daily timeframe, such price action will be a temporary pullback which should recover quickly during the next bounce.
MACD: The histogram on the MACD is forming lower highs; this is short-term bearish. As long as the moving averages on MACD do not form a bearish cross, the bias remains bullish for ETH despite a bearish histogram.
ETH Bias
Over the long term, the ETH bias remains very bullish. In the near future, expect price to retest the key support level. A good bounce at that level could propel ETH back to its all-time high.
Short-Term Price Prediction for ETH Price
The $3,600 support level remains a very tempting entry for bulls, and this will have to be confirmed by the price action once it arrives there. The key resistance at $3,900 can continue to push ETH lower until bulls take a firm control of the price. That would translate in an attempt to break the current all-time high at $4,380.
This article first appeared at CryptoPotato
