The price of Ethereum (ETH) is currently experiencing a downward trend after encountering resistance at $4,082.
Long-term Analysis of Ethereum Price: Bearish
Since March 8, buyers have made multiple attempts to keep the price of Ethereum above the significant $4,000 level. However, the decline has slowed down near the $3,400 support. If the bears manage to break below this support level, Ethereum will drop further to a floor above the 50-day Simple Moving Average (SMA) or around $3,050. On the other hand, if the bulls successfully break above the 21-day SMA, Ether will resume its upward trend and continue its positive momentum towards the previous high.
If the bulls manage to break through the psychological barrier of $4,000, Ethereum will enter its second uptrend and may see an initial rise to a high of $4,300. Currently, Ether is trading at $3,589.
Ethereum Indicator Analysis
The movement of Ethereum’s price has been restricted by its positioning within the moving average lines. Currently, it is below the 21-day SMA but remains above the 50-day SMA. The breaking of these moving average lines will determine the development of a new trend for Ether. On the 4-hour chart, the price bars have fallen significantly below the moving averages.
Technical Indicators:
- Key resistance levels – $4,000 and $4,500
- Key support levels – $3,500 and $3,000
What’s Next for Ethereum?
Currently, Ethereum is experiencing a downward trend below the moving average line on the 4-hour chart. It is trading above $3,400, with $4,000 acting as a resistance level. On March 5, the price of Ethereum broke the support level of $3,400, but the bulls quickly bought the dips. Presently, Ether has regained its positive momentum and is on the rise.
Hot Take: The Future of Ethereum
The price of Ethereum is currently facing resistance at $4,082 and is experiencing a downward trend. However, if the bulls manage to break through this resistance level, Ethereum will enter its second uptrend and may see an initial rise to $4,300. On the other hand, if the bears break below the support level of $3,400, Ethereum will drop further towards the 50-day SMA at around $3,050. The movement of Ether within the moving average lines will determine its future trend. Traders should closely monitor these key levels and indicators to make informed decisions regarding their investments in Ethereum.
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