ethereum's rally has stalled as the price has failed to continue above the $4,000 level once again. However, not all hopes for a new bull run are lost yet.
Technical analysis
The daily chart
The price has been declining over the past two weeks based on the daily time frame of the eth/USDT chart. This short-term downtrend has started since the cryptocurrency was once again rejected from the $4,000 resistance level.
Currently, the $3,500 level provides support and prevents the market from falling further. A bearish breakout could result in a further decline towards $3,000 and the 200-day moving average located around the same area. This would be a key area as a drop to the downside could cause a change in the overall trend.
The 4 hour chart
If we look at the 4-hour chart, the price is apparently starting to recover from the $3,500 support zone. It has formed a falling wedge pattern and broken above it, a classic bullish reversal pattern.
If the market can overcome the recent high around the $3,650 mark, a rally towards the $4,000 resistance zone would be very likely. With the RSI also rising back above 50%, a bullish scenario is much more likely.
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Cryptocurrency charts by TradingView.
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