• Ethereum’s price has been unable to break the $2,000 mark and is now testing an important support level.
• The 200-day moving average is a strong indicator of the overall trend, and if ETH falls below it, it could lead to a drop towards the $1,300 level.
• On the 4-hour chart, ETH has been rejected from the $1,900 level and is now testing the lower trend line of a falling wedge pattern around the $1,600 support.
Ethereum Price Analysis
Ethereum’s price has experienced a decline in recent days after being unable to surpass the $2,000 level. However, it is currently testing an important support level and its response to this could have significant implications for performance in coming months.
Daily Chart Analysis
On the daily timeframe, Ethereum’s price was rejected from the 50-day moving average at approximately $1,850 and subsequently declined below $1,800. Currently experiencing downward momentum, there appears to be some support near the 200-day moving average around $1,600. If ETH fails to hold above this pivotal point then we could see further losses towards the $1,300 level. Alternatively should it break back above both $1800 and 50MA then there may be potential for an upward move targeting resistance at around 2200$.
4 Hour Chart Analysis
On a 4 hour basis Ethereum’s price has dropped rapidly after failing to pass through resistance at 1900$. This comes after being caught within a large falling wedge pattern between 1800$ – 1900$ with current tests taking place against its lower boundary situated near 1600$. A successful break of both 1800$ and 1900$ will likely result in renewed bullish sentiment pushing prices up towards 2300$.
Conclusion
At present Ethereum sits at an interesting juncture with both downside risk as well as potential upside reward depending on how it responds to current levels of support near 1600$. Should buyers successfully defend this area then we could expect further gains however should sellers push through then we may see further losses towards 1300$.
Important Levels To Watch
• Support: 1600$, 1400$, 1300$ • Resistance: 1800$, 1900$, 2300$