ethereum (eth), the second-largest cryptocurrency by market capitalization, recently saw its price fall below the 4-hour simple moving average (SMA). This technical development is noteworthy for traders and investors as the 4-hour SMA is often used to gauge short-term market momentum.
When the price of a cryptocurrency falls below this moving average, it may indicate a possible change in market sentiment from bullish to bullish. bearish. This could imply increased selling pressure and a possible continuation of the downtrend. The implications of this price movement extend beyond technical analysis, as broader market conditions, investor behavior, and fundamental factors also play a crucial role in shaping ethereum's future trajectory.
In this article, we will explore the possible price action of eth with the help of technical indicators.
ethereum Price Condition on 4-Hour Chart
Firstly, it can be seen that the eth price in the 4-hour period has seen a drop below the 100-day SMA after moving in a consolidated manner for some time. It should be noted that most of the time, when an asset falls below SMA, it could indicate a short- or long-term movement in that direction.
<img decoding="async" class="size-medium wp-image-612107 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/Ethereum-falls-below-4-hour-SMA-analyzing-the-impact.jpeg" alt="ethereum” width=”460″ height=”267″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM-1.jpeg?w=1439 1439w, https://technicalterrence.com/wp-content/uploads/2024/06/Ethereum-falls-below-4-hour-SMA-analyzing-the-impact.jpeg 460w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM-1.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM-1.jpeg?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM-1.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM-1.jpeg?w=1140 1140w” sizes=”(max-width: 460px) 100vw, 460px” loading=”lazy” data-recalc-dims=”1″/>
Furthermore, the Relative Strength Index (RSI) indicator also confirms that ethereum could move lower for a while as the RSI line has crossed below 50% and could trend there for a while.
On the daily chart, it can be seen that ethereum is attempting to advance towards the 100-day SMA after dropping a bearish candle the previous day. At this point, it can be suggested that eth fell to test the 100-day SMA before making an upward move again.
<img decoding="async" class="size-medium wp-image-612106 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/1717870419_727_Ethereum-falls-below-4-hour-SMA-analyzing-the-impact.jpeg" alt="ethereum” width=”460″ height=”267″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM.jpeg?w=1439 1439w, https://technicalterrence.com/wp-content/uploads/2024/06/1717870419_727_Ethereum-falls-below-4-hour-SMA-analyzing-the-impact.jpeg 460w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM.jpeg?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM.jpeg?w=1140 1140w” sizes=”(max-width: 460px) 100vw, 460px” loading=”lazy” data-recalc-dims=”1″/>
Finally, the RSI line of the RSI indication is currently breaking out of the overbought zone towards 50%, indicating that there is still room for eth to go down.
eth Price Projection
Right now, ethereum is trying to move towards the daily SMA. If it falls below, it will continue moving towards the $2,865 support level. Furthermore, it may fall further to test the support level of $2,147 if it falls below the aforementioned level.
However, if eth price touches the SMA and recovers, it will rise towards the $4,099 resistance level. Furthermore, if it falls below this resistance level, it will continue to rise to test the $4,863 level. eth it may move to create a new high if it rises above the $4,863 level.
At the time of writing, eth price was trading at around $3,694 and up 0.41% with a market cap of over $443 billion and 24-hour trading volume of over $18 billion. . Its market capitalization dropped by 2.97%, while its trading volume increased by 39.28% in the last day.
Featured image from iStock, chart from Tradingview.com
