$3,600 is the key support level.
$3,900 is the key resistance level.
Over the last few days, Ethereum has been consolidating after a correction following the most recent rally, in which the price was rejected at the key resistance level of $3,900. On Sunday, ETH fell almost to the previously mentioned support level of $3,600.
Technically, the price is unlikely to attempt another push above the resistance until the bulls regain control of the support area, implying that a more definitive retest may be in order. If that happens, we could see a breakout above the key psychological and technical resistance range of $3,900 – $4,000 and a push towards the all-time high.
Indicators of Technical Performance
Monday saw a significant increase in volume. The bulls, however, were unable to change the momentum and failed to break resistance. When the price approaches the key support level, it’s critical to keep an eye on the volume. A strong display of bullish force at that time will be a good early indicator of the price reversing course.
RSI: The RSI is bearish on the four-hour timeframe, so it’s important to be cautious and watch for a potential short-term retracement. On the daily timeframe, such price action will be interpreted as a temporary pullback that will be quickly recovered during the next bounce.
MACD: The MACD histogram is forming lower highs, indicating a short-term bearish trend. Despite a bearish histogram, the bias for ETH remains bullish as long as the MACD moving averages do not form a bearish cross.
Bias in ETH
The long-term ETH bias remains very bullish. Price is likely to retest the key support level in the near future. A strong bounce at that level could send ETH back to its all-time high.
ETH Price Prediction in the Short Term
The $3,600 support level remains a very appealing entry point for bulls, and price action once it arrives there will have to confirm this. The key resistance at $3,900 may continue to push ETH lower until bulls regain control. This would imply a bid to break the current all-time high of $4,380.