ETH again lost the key level of $ 4,000. In the following analysis, we will try to understand what this means for the second largest crypto in the short term.
Key assistance levels: $ 3,738
Key Resistance Levels: $ 4,000, $ 4,435, $ 4,868 (ATH)
After a few days maintaining the crucial level above $4,000, ETH’s price dropped below this key price area, which has turned back into solid resistance. The momentum was simply not there to sustain a price above it. As mentioned before, the recent price move was followed by a low amount of trading volume.
Current support is at $ 3,738 and will likely be retested if the bulls do not step up soon.
Technical Indicators
Trading Volume: As said before, the volume was extremely low at the start of this week and bears took advantage today. Price slipped on renewed volume, which is bearish.
RSI: The daily RSI is also down, and it is below 50 points, indicating that the bears are controlling the price action.
MACD: The daily MACD remains bullish and is losing momentum. The histogram and moving averages may soon flip to the bearish side if the current downtrend continues.
Bias
The bias for ETH is bearish right now due to the current price action.
Short term price prediction for ETH
ETH failed to hold more than $ 4,000. This is a major red flag that may cause sellers to lower ETH to the current support at $ 3,738. ETH is unlikely to be able to recover anytime soon; therefore, the best hope is for price to hold above key support as the bulls gather strength.
