The Price of Ethereum Falls below Moving Average Lines
On July 25, the price of Ethereum (ETH) dropped below the moving average lines. Despite reaching the $3,600 resistance zone, the largest altcoin was decisively rejected.
Ethereum Price Long-term Analysis: Bearish Outlook
Following breakouts on July 15 and 19, buyers attempted to maintain the price above $3,600 but were unsuccessful. Ether fell to a low of $3,093 on July 25, with bulls buying the dips. Currently, the altcoin is trading above the $3,000 support level but below the 21-day SMA resistance.
The market is now experiencing selling pressure after encountering resistance at the 21-day SMA. If bears manage to break the $3,000 support level, Ethereum could drop to its previous low of $2,850. Currently, the altcoin is valued at $3,240.
Ethereum Indicators Analysis
Following the price decrease on July 25, Ether bears have re-entered the negative trend zone. This trend was confirmed when the cryptocurrency retested the 21-day SMA resistance. Both charts display a bearish crossover in moving average lines, indicating a downtrend.
Technical Indicators
- Major Resistance Levels: $4,000 and $4,500
- Major Support Levels: $3,500 and $3,000
Future Direction for Ethereum
On the 4-hour chart, Ethereum is currently bearish and trading within a narrow range of $3,065 to $3,300. The bulls were pushed back from the 21-day SMA resistance at $3,300 during an upward correction. The altcoin’s price range is constrained by the formation of doji candles, keeping Ethereum stable above the $3,200 support level.
Hot Take: What Should You Expect Next for Ethereum?
Despite recent volatility, Ethereum’s price has shown a bearish outlook with resistance at $3,600 and support at $3,000. Bearish momentum has increased following rejection at the 21-day SMA resistance. Keep a close eye on the $3,000 support level, as a break could lead to a further decline. Stay informed about key technical indicators and market trends to make informed decisions about your Ethereum holdings.
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