Ethereum Price Analysis: ETH Sits On Strong Support Above $4,000
Ethereum price is up approximately 7% to the current price $4,366 as it trades in a third straight bullish session in the daily timeframe. Bulls are determined to recover the weekend losses that followed the crypt market flash crash that saw the ETH lose as much as 22% in just a few hours. If the largest altcoin continues to hold above the $4,000 crucial level, it would be possible to recover even last week’s losses.
Ethereum Price Sits On Robust Support Downwards
Ethereum (ETH) is trading close to the 50-period Simple Movign Average (SMA) around $4,351. Closing above the 50 SMA will bolster the bulls who will push the price of the smart contracts giant’s token rise above the $45,82 support embraced by the lower boundary of the ascending parallel channel.
Such a move will place ETH back into the confined of the rising channel and a complete recovery of last week’s losses would be possible with Ethereum tagging $4,873 embraced by the middle boundary of the governing chart pattern.
ETH/USD Four-Hour Chart
The upward movement of the Relative Strength Index (RSI) indicator and its position above the midline validates this bullish outlook.
Also, ETH sits on strong support provided, not only by the $4,000 psychological level but also the 100 and 200 SMAs at $3,888 and $3197 respectively.
In addition, data from on-chain metrics provider, IntoTheBlock validate the strong support that Ethereum price has downwards. Its In/Out of the Money Around Price (IOMAP) model shows that ETH immediate support at $4,300 is relatively strong. It is within the $4,235 and $4,364 price range where roughly 1.53 million addresses previously bought approximately 4.43 million ETH.
Ethereum IOMAP Chart
The same IOMAP chart above shows that the path with least resistance for Ethereum price is upwards. Therefore, investors should remain hopeful that as long as ETH remains above $4K, it remains significantly bullish for the long-term holders.
However, a breakdown of the $4,300 immediate resistance could trigger massive sell orders that are likely to pull Ethereum down towards the $4,107 support floor or below the $4,000 level to tag the 100 SMA at $3,889.Source