Ethereum’s price fell below $ 4,000 for a brief period on Thursday before recovering sharply. However, the danger is not yet ruled out, as ETH must break through the critical key resistance.
Key assistance levels: $ 4,000 – $ 3,850
Key Resistance Levels: $ 4,350 – $ 4,868 (ATH) – $ 5,075
The price of ETH is currently hovering around the key resistance of $ 4,350, the level that ETH has not been able to close above in the last five days.
If it doesn’t, ETH will likely see another drop to re-test key $ 4,000 support (September high), which was well defended by the bulls on Thursday. The global market and ETH are facing a watershed moment that will define the price action for the rest of the month.
Trade volume: High volume was noted both after the outage below $ 4000 and during its immediate recovery. This highlights that this crucial level of support is where the balance between market forces lies.
RSI: Daily and 4 hour RSI is falling. Unless the bulls push the price of ETH above the key resistance at $ 4,350 (daily and weekly close), the RSI is unlikely to turn bullish at any point in the near term.
MACD: The MACD on the daily horizon remains bearish. The strong show of strength from the bulls at key support has taken the MACD histogram to higher lows, but it’s too early to get excited. Until the MACD moving averages make a bullish cross, the trend is bearish.
The bias for ETH is short-term bearish due to technical indicators and current price action. However, if the bulls continue to defend the key support at $ 4000 well, this bias will change.
Short-term price prediction for ETH
Ethereum had experienced a moment of weakness three days ago but quickly recovered and does even better against Bitcoin (ETH / BTC).
Currently, the price is trying to break above the key resistance at $ 4,350. If this fails, expect to see ETH test $ 4,000 again in the next few days. The higher the price of ETH is above this key support, the greater the chance that the bulls will regain control of the price action in anticipation of a new ATH in the middle of $ 5,000.
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