Ethereum Drops Below The 100-Day Moving Average – What’s Next?
March 23 2024 - 10:31AM
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The crypto market is experiencing a pullback after Bitcoin, the
leading cryptocurrency, reached a new all-time high. However,
Ethereum (ETH) is not left out in this downward move. After setting
a new yearly high of $4,094, the price of Ethereum has been moving
downward and this has led to the price trading below the 100-day
Moving Average (MA) both in the 1-hour and 4-hour timeframes, but
this is not so in the daily timeframe. Will the price
continue downward or will it change direction and start moving
upward? At the time of writing, Ethereum’s price was trading around
$3,360 and was up by 0.64% in the last 24 hours. Ethereum
Indicators And What They Suggest Looking at the chart, technically
we can see that a support level of $3,067 and a resistance level of
$3,681 and $3,591 have been formed respectively. Nonetheless, there
could be more support and resistance created if the price continues
to move downward. 4-Hour Moving Average: A technical observation of
the chart from the 4-hour timeframe as seen in the image below
reveals that the price is trending below the 100-day moving
average. This suggests that the price is on a downtrend and could
potentially move further downward. 4-Hour RSI indicator: With
the help of the Relative Strength Index indicator (RSI) we can see
the RSI signal line is trending below the 50 line. This is a strong
indication that the price of Ethereum is in a downward trend as
observed in the image above. MACD Indicator: Taking a close look at
the MACD indicator in the 4-hour timeframe, it appears that the
MACD histogram has dropped below the zero line. In addition, both
the MACD line and the signal line have crossed below the zero
line. This setup indicates that the price is still bearish
and there are possibilities that it could still move downward. The
image below provides more details: Possible Outcome If the price of
Ethereum continues downward and breaks below the support level of
$3,067, it could move further downward to create a new support
level. However, if the price fails to break below this support
level, we could see a price reversal and may start a fresh trend
upward. Thus there could be a possibility that the price could
break above the resistance levels of $3,681 and $3,591
respectively, and continue its bullish run. Featured image from
iStock, chart from Tradingview.com
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