On Tuesday, crypto markets took a brief tumble, with some of the most prominent digital currencies posting double-digit losses before mounting a modest comeback. The price of Ethereum reaching the $4,000 region had also triggered big profit-taking. ETH’s brutal sell-off to $3,000 has left the industry’s second-largest asset exposed to increased nervousness, as the wider cryptocurrency market teeters on the brink of a bearish resolution. Despite the latest drop, ETH made a quick bounce from $3,009 lows where dip buyers hunt for entry. At the time of this post, the pair trades at $3,465 pushing back to critical technical levels implying that investors are ready to switch to long position mode very quickly. With over 250k transactions, the Ethereum layer-2 ecosystem surpasses daily transactions on the Bitcoin network, the idea of flipping the Bitcoin network has resurfaced. The recent improvements in Ether’s ecosystem fuel an optimistic outlook on the price.
Key Levels
Resistance Levels: $4,400, $4,000, $3,700
Support Levels: $3,350, $3,000, $2,700,
ETH/USD Daily ChartThe ETH/USD price increased to $3,568 at the time of writing, a considerable increase from the week’s low of $3,009. The pair has climbed marginally above the ascending trendline on the daily chart. It has also risen above the moving average (MA 50), while the Relative Strength Index (RSI) approaching the midline territory. As a result, the pair is likely to continue ranging as bulls and bears contest for key zones.
The bulls will aim for the important resistance level of $3,700 while the bears will aim for $3,350 immediate support in the present session. ETH/USD will likely keep rising as the scenario creates an opportunity for investors to buy the dip. If the pair remains above the $3,000 psychological level, the bulls might continue to dominate the price in the next sessions. The possible target for the pair would be near the $4,000 area.
ETH/USD 4-Hour ChartOn the lower time frame, ETH/USD has breached the moving averages (MA 50 & MA 200). Its failure to sustain the rebound above $3,200 towards $3,600 respectively can indicate medium-term bearishness for the pair. Investors will watch price near mentioned resistance and support in the next few sessions for a break on either side which is needed to form the next view.
In addition, looking at the 4-hour chart, the ETH/USD has traded in a brief rail track since making a high of $4,030 before plunging beneath the $4,000 barrier. However, the pair is stuck between a rock and a hard place, as it has run into resistance and support within the MA 50 and MA 200. A break above $3,700 would open the door for a move back up to the Sept 3rd highs.
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