Chart by TradingView
Key Support level: $3,900
Key Resistance level: $4,380
Ethereum missed breaking the all-time high by less than $5 dollars today and is now preparing for another attempt after a sharp rejection (13% drop on Bitstamp). As we reported earlier, Bitcoin flash crashed on numerous exchanges and even dipped by 87% on Binance US for a second. This dragged the entire market down, but it seems that prices are now recovering.
The bulls quickly bought the support line at $3,900 after the price was rejected, showing that this move has the strength to push us above the key resistance at $4,380, which is also the ETH all-time high.
Volume: The volume is increasing by the hour, which is very bullish, and another attempt to move beyond the all-time high seems to be right around the corner.
RSI: On the daily timeframe, the RSI has crossed over the 70 points level, this signals a bullish market and that bulls are in control of the price action.
MACD: The histogram is showing higher highs for the past three days with no signs of weakness. The bias remains bullish as long as the MACD stays on the positive side.
The ETH bias can be considered as extremely bullish, with the price having recently been rejected from the all-time high by a very thin margin and now recovering.
At the time of this writing, ETH is attempting another break of resistance. It’s interesting to see, though, if the bears will reject the price once again at this key technical and psychological level.
It’s important to keep a very close eye on the price action around the $4,380 level. An imminent break of this key level can lead to a rapid increase in price for Ethereum. When that happens, the next levels of resistance can be found around the psychologically round numbers like $5,000 and $6,000. The support at $3,900 held strong today, thus signaling that bulls continue to be in control.
