- Ethereum’s impressive rally has recently seen a pause as it struggled to maintain traction above the $4,000 mark.
- Market participants are now watching critical levels to gauge the next move for the second-largest cryptocurrency.
- An important technical pattern suggests potential bullish reversal, even amidst the current uncertainty.
Catch up on the latest with Ethereum’s price action, technical developments, and what might be around the corner.
Technical Analysis
By ExpertAnalyst
The Daily Chart
In the daily timeframe of the ETH/USDT chart, Ethereum’s price action has entered a downtrend over the past two weeks. This decline follows a rejection at the significant $4,000 resistance. Currently, the $3,500 support level is holding steady, preventing deeper losses. A bearish break below this threshold could target the $3,000 mark and the 200-day moving average, which converge at a critical support zone. Falling below these levels might signal a more extended bearish trend.
The 4-Hour Chart
On the 4-hour chart, Ethereum shows early signs of recovery as it bounces off the $3,500 support area. The formation of a falling wedge pattern, typically seen as a bullish reversal signal, has culminated in a breakout above it. If the price can surpass the previous high near $3,650, a rally towards the formidable $4,000 resistance appears feasible. The relative strength index (RSI) crossing above 50% further supports a more optimistic outlook.
Conclusion
In conclusion, while Ethereum’s recent struggles to sustain above $4,000 might concern some traders, key support levels and technical patterns offer hope for a bullish reversal. It remains crucial for stakeholders to watch these levels closely for any significant price movement and trend shifts.
