After weeks of bearishness, Ethereum soared above $1000. It soared to close to 9 percent in 24 hours. However, over the week it suffered a 22% loss.
Although the coin fell below $900, ETH’s buying power slowly improved and ETH moved up on the chart. Because of the technical outlook, it is difficult to know if Ethereum’s future direction will be northwards.
Market control is maintained by the bears. Should the currency fall below the $100 mark the next trading zone will lie between $700-$900. If the currency falls below $100, buyers could reclaim their investment and enter again the market. Buyers may be able to re-enter the market if ETH drops below the aforementioned trading zones. ETH has been totally bearish for more than ten consecutive weeks.
Ethereum Price Analysis: 4 Hour Chart
After touching $900 as the lowest price at the time, ETH saw a rise on its charts. According to the chart’s four-hour time frame, the asset was valued at $1090. On the four hour chart, $1200 was the overhead resistance. The sellers may take another blow, and the price will fall to between $800-$900.
The four hour chart showed Ethereum continuing to fall, suggesting a bearish market. The asset’s volume had dropped which indicated that there was less buying. Bearish price action was again indicated by the red volume bar.
Technical Analysis
The market’s buying power increased as ETH spiked on the chart. The four-hour chart showed a decrease in the buying power, indicating that ETH could see a further decline in its price. After noting an increase, the Relative Strength Index was at 50.
RSI remained positive meaning that selling strength was outweighed by buying strength. As buying strength showed up, corresponding to the same, ETH’s price climbed above the 20-SMA line. The price above the 20-SMA indicated that buyers drove price momentum.
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The market saw a temporary rally that allowed buyers to start returning. Moving Average Convergence Divergence depicts price direction, change and other signs of bullishness. MACD saw a bullish crossover, flashing green signal bars that can be interpreted as a buy signal.
Buyers will continue to be dominant and ETH may soon reach its price resistance point. Chaikin Money Flow showed a recovery as well. The indicator depicts capital outflows as well as inflows. CMF was parked in the middle of the line at press time. This represents an equal amount capital outflows and inflows for ETH.
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