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Ethereum’s price dropped under $4,000 for a brief period on Thursday before heavily recovering. However, the danger is not over yet, as ETH needs to break above critical key resistance.
Key Support levels: $4,000 – $3,850
Key Resistance levels: $4,350 – $4868 (ATH) – $5,075
ETH’s price is currently hovering around the key resistance of $4,350, the level that ETH was unable to close above over the past five days.
If failing to do so, ETH is likely to see another drop to retest the key support at $4,000 (September high), which was well defended by the bulls on Thursday. The overall market and ETH face a decisive moment that will define the price action for the remainder of the month.
The Technicals
Trading Volume: A high volume was noted both following the breakdown below $4,000 and during its immediate recovery. This highlights that this crucial support level is where lies the equilibrium between market forces.
RSI: The RSI on the daily and the 4-hour timeframe is curving back down. Unless bulls push the ETH price above the key resistance at $4,350 (daily and weekly close), it is unlikely the RSI can turn bullish anytime in the next short term.
MACD: The MACD on the daily timeframe remains bearish. The strong show of force from bulls at the key support has made the MACD histogram go through higher lows, but it is too early to get excited. Until the MACD moving averages do a bullish cross, the trend is bearish.
Bias
The bias for ETH is short-term bearish due to the technical indicators and the current price action. However, if bulls continue to defend well the key support at $4,000, this bias will change.
Short-Term Price Prediction for ETH
Ethereum had seen a moment of weakness three days ago but recovered sharply and performed even better against Bitcoin (ETH/BTC).
Currently, the price is trying to move higher above the key resistance at $4,350. If unsuccessful, expect to see ETH retesting $4K over the coming days. The more ETH price sits above this key support, the greater the chances that bulls regain control of the price action in anticipation of a new ATH amid $5K.