Lately, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been experiencing some significant price movements. Traders and investors are closely watching as the price of ETH has fallen below the 4-hour Simple Moving Average (SMA). This technical development is crucial as it can indicate a shift in market sentiment from bullish to bearish.
Analysis of Technical Indicators
Looking at the 4-hour timeframe, Ethereum’s price has dropped below the 100-day SMA after a period of consolidation. This is a key point to note as it could signal a potential long or short-term move in that direction. The Relative Strength Index (RSI) also confirms this downward trend, as it has crossed below 50% and could continue in that direction for some time.
Examining the daily chart, Ethereum is making a move towards the 100-day SMA after a bearish candlestick was formed. It seems like ETH is testing the 100-day SMA before potentially moving upwards again. The RSI line from the RSI indication is also dropping out of the overbought zone towards 50%, indicating further downward movement.
As of now, Ethereum is moving downwards towards the daily SMA. If it breaks below this level, it could continue to decrease towards the $2,865 support level. There is a possibility that it could even drop further to test the $2,147 support level if it falls below the previous level. On the other hand, if ETH touches the SMA and bounces back, it could move upwards towards the $4,099 resistance level. Breaking above this resistance could lead to a test of the $4,863 level and potentially a new high.
Current Price and Market Capitalization
At the time of writing, Ethereum’s price was around $3,694, up by 0.41%. The market capitalization stood at over $443 billion, with a 24-hour trading volume exceeding $18 billion. Despite the slight increase in price, the market capitalization was down by 2.97%, while the trading volume surged by 39.28% in the past day.
The technical analysis of Ethereum’s price movement indicates a potential downward trend in the short term. Traders and investors should closely monitor the key support and resistance levels mentioned to anticipate future price movements. It is essential to consider not only technical indicators but also broader market conditions and fundamental factors that could impact Ethereum’s trajectory in the long run.