Ethereum Price Analysis: ETH Bulls Run Out Of Options, Breakout To $4,000 In Jeopardy
Ethereum is trading slightly above $3,300 on Tuesday during the Asian session. On Monday, its price action was mainly drab, with bulls unable to crack the resistance at $3,400 to make way to $4,000.
Intriguingly, Bitcoin gained some key ground to trade above $50,000. Nonetheless, a correction also looms, with BTC trading marginally below the same key level.
Ethereum Price On The Verge Of A Pulldown To $3,000
Following the recovery above $3,300, resistance at $3,600 and $4,000 came in sight. However, these levels are still on the horizon due to a massive barrier at the 61.8% Fibonacci level of the last swing high at $4,400 to a swing low of $1,721.
If this hurdle remains intact, bulls will have a big challenge working their way toward $3,600 and $4,000, respectively. Besides, the Moving Average Convergence Divergence (MACD) has a massive bearish outlook.
This technical index follows the trend of an asset and calculates its momentum. A retreat to the mean line implies that sellers are gaining traction. The bearish narrative has been accentuated by a recent sell signal presented when the 12-day Exponential Moving Average (EMA) crossed below the 26-day EMA.
ETH/USD Daily Chart
Meanwhile, support is anticipated at $3,200, enhancing the bulls’ position in the market, thereby resuming Ethereum’s uptrend. Realize that the Relative Strength Index (RSI) gradually moves toward the overbought area, hinting at the bullish grip becoming firmer.
A daily close above the 61.8% Fibonacci level would restore the bulls’ power against the bears as they work on the mission to bring down the hurdles at $3,400, $3,600, and $4,000. Realize that the 50 Simple Moving Average (SMA) has crossed above the 100 SMA in the same time frame, validating the potential upward price action.
Ethereum Intraday Levels
Spot rate: $3,315
Support: $3,200 and $3,000
Resistance: $3,400 and $3,600Source