Price of Ethereum (ETH) Stuck Between Moving Average Lines
The price of Ethereum (ETH) has been stuck between moving average lines since its drop on January 3. Despite reaching a low of $2,097, investors bought the dips and Ether has now recovered to $2,249.50. However, the moving average lines have been capping Ether’s price movement.
Long-term Analysis: Bullish Outlook
If buyers can keep the price above the 21-day simple moving average (SMA), they may be able to resume the uptrend and reach the previous high of $2,400. On the other hand, if sellers break the 50-day SMA, Ether will drop to $2,097. Currently, Ether’s price is oscillating between the moving average lines.
Ethereum Indicator Analysis
Ethereum is currently trapped between moving average lines due to its recent rebound. The price bars on the 4-hour chart remain below the moving average lines after the January 3 drop. The risks for Ether are diminishing as it maintains a sideways trend below the $2,400 resistance level.
Technical Indicators:
Key resistance levels: $2,200 and $2,400
Key support levels: $1,800 and $1,600
Next Direction for Ethereum
On the 4-hour chart, Ethereum is falling below the moving average lines and encountering rejection at the $2,300 level. This could push its price above $2,100 and back to its previous low. Recent reports indicated that Ether was rising again and buyers were driving it towards previous highs.
Hot Take: Will Ethereum Break Free from Moving Average Lines?
The price of Ethereum has been confined between moving average lines since its drop on January 3. While investors have managed to push it back up, the moving average lines continue to limit its movement. The key question now is whether buyers can keep the price above the 21-day SMA and resume the uptrend towards $2,400. On the other hand, if sellers break the 50-day SMA, Ether may face further downside towards $2,097. As Ethereum remains trapped between these levels, its next direction will depend on the ability of buyers and sellers to break free from the moving average lines.
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