The cryptocurrency market is experiencing a pullback after bitcoin, the leading cryptocurrency, reached a new all-time high. However, ethereum (eth) is not left out of this downward movement.
After setting a new yearly high of $4,094, ethereum price has been moving lower and this has led to the price trading below the 100-day moving average (MA) on both the 1-hour time frame as in the 4-hour schedule, but this is not the case in the daily schedule.
Will the price continue to go down or will it change direction and start going up? At the time of writing, ethereum price was trading around $3,360 and is up 0.64% in the last 24 hours.
ethereum Indicators and What They Suggest
Looking at the chart, technically we can see that a support level of $3,067 and a resistance level of $3,681 and $3,591 have formed respectively. However, more support and resistance could be created if the price continues to decline.
4-hour moving average – A technical observation of the chart of the 4-hour period, as seen in the image below, reveals that the price is trending below the 100-day period. moving average. This suggests that the price is in a downtrend and could potentially drop further.
<img decoding="async" class="size-medium wp-image-599333 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/03/Ethereum-falls-below-the-100-day-moving-average.png" alt="ethereum” width=”460″ height=”273″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-57-27.png?w=2273 2273w, https://technicalterrence.com/wp-content/uploads/2024/03/Ethereum-falls-below-the-100-day-moving-average.png 460w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-57-27.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-57-27.png?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-57-27.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-57-27.png?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-57-27.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-57-27.png?w=1140 1140w” sizes=”(max-width: 460px) 100vw, 460px” loading=”lazy” data-recalc-dims=”1″/>
4-Hour RSI Indicator – With the Help of the Relative Strength Index (RSI) Indicator We can see that the RSI signal line is trending below the 50 line. This is a strong indication that the price of ethereum is in a downtrend, as seen in the image above.
MACD Indicator – Looking closely at the MACD indicator on the 4-hour period, it appears that the MACD histogram has fallen below the zero line. Furthermore, both the MACD line and the signal line have crossed below the zero line.
This setup indicates that the price is still bearish and there are chances that it could still go down. The following image provides more details:
<img loading="lazy" decoding="async" class="size-medium wp-image-599334 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/03/1711206456_268_Ethereum-falls-below-the-100-day-moving-average.png" alt="ethereum” width=”460″ height=”256″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-58-50.png?w=2273 2273w, https://technicalterrence.com/wp-content/uploads/2024/03/1711206456_268_Ethereum-falls-below-the-100-day-moving-average.png 460w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-58-50.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-58-50.png?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-58-50.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-58-50.png?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-58-50.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/03/ETHUSDT_2024-03-23_11-58-50.png?w=1140 1140w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
Possible result
If the price of ethereum continues down and breaks below the $3,067 support level, it could move further down to create a new support level. However, if the price fails to break below this support level, we could see a price reversal and start a new uptrend. Therefore, there could be a chance for the price to break through the resistance levels of $3,681 and $3,591 respectively, and continue its bullish run.
Featured image from iStock, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
