After a period of consolidation, Ethereum (ETH) eventually broke higher in a spectacular rally – before reversing sharply from the $4,867 high, yet it remains in the bullish territory amid downside risks. Ether price moved into a short-term negative zone after trading below the $4,200 support. Over the last month, ETH has been on a roller coaster ride, and its price may only be experiencing a healthy correction as we move past mid-November. The ETH/USD pair is currently between two highly-interesting levels, the $4,000 and $4,500 zone, one of which could be the key to the next move. A break in either direction could reveal a lot about the direction of travel in the weeks ahead. At the time of this analysis, ETH/USD seeks support near the moving average (MA 50) above the $4,000 handle. Ethereum’s outflow volume from exchanges hit an all-time high yesterday, as per statistics from crypto analytics platform Glassnode, surpassing $100 million in a single day. It indicates that investors are withdrawing funds from exchanges and have maintained their faith in the token buying the dip in large numbers.
Key Levels
Resistance Levels: $5,000, $4,700, $4,400
Support Levels: $4,000, $3,700, $3,400
ETH/USD Daily ChartAfter bouncing off the $4,346 intraday high, ETH/USD is forming a negative trend, sliding to the moving average (MA 50). Despite the dip, the pair may find support at the $4,000 level, and any moves below could signal a downward trend. The Relative Strength Index confirms the fall to the oversold territory with a bearish move under its midlines.
If the pair continues the selling interest below the MA 50, immediate support could emanate from the Oct. 28 low of $3,889 ahead of the moving average (MA 200) trough at $3,130. On the other hand, a jump beyond the intraday high of $4,346 could take the market towards a resistance level at $4,400 and $4,500, respectively.
ETH/USD 4-Hour ChartThe ETH/USD has been dropping from the November peak, aided by persistent negative pressures. Furthermore, its 50 moving average (MA) may attempt to cross below the 200 moving average (MA) if bearish pressure continues by completing a ‘death cross’ and raising concerns of a bearish trend. The pair’s recent decline displays in the short-term oscillators, which is sending a bearish bias.
The Relative Strength Index is slightly above 30 oversold, but the price is below both the MAs, and that’s a red alert. On the flip side, the bulls may regain control, and initial support stays at the horizontal level at the $4,000 level. Advancing beyond that region could send the pair between the $4,000 and $4,500 highly-interesting zone.
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