- ETH price prediction highlights Ethereum’s formation of a falling hammer pattern.
- The falling hammer pattern suggests Ethereum is on the brink of a major bull run.
- The $3,100 support line established by the crypto asset is proving to be a critical component in the bullish narrative.
- Despite the bullish narrative, the Moving Average Convergence Divergence (MACD) indicator paints a bearish picture.
Like most cryptocurrencies in the market, Ethereum registered a significant price dip over the weekend. The crypto asset plunged from a high of $4,000 to its current support line at $3,100.
ETH Price Prediction: General price overview
Over the last 48-hours, Ethereum’s price movement has been sluggish in the market following the move by the bulls to play defensive. It appears investors are currently focused on ensuring the crypto coin does not plunge further past the $3,000 mark in the wake of a bleeding market. At the time of writing, Ethereum is exchanging hands at around $3,520 amidst a gradually looming bull run. On Monday, the pioneer crypto coin depreciated by 8 percent following Sunday’s 1.7 percent price decline. At the end of trading yesterday, Ethereum was trading at around $3,280.
Now that Ethereum has managed to push through its immediate upside barrier at $3,500, the crypto asset looks set to surge past the $4,000 mark in the near term. Despite the bullish outlook, Ethereum’s 100 Simple Moving Average on the 4-hour chart appears to be painting a bearish picture.
ETH price movement in the past 24-hours
According to Ethereum’s 24-hour price movement, the crypto coin seems to have had a mixed start of the day as it registered an intraday high at $3,518. Despite the impressive early morning bull run, Ethereum failed to push through its first major resistance barrier at $3,860. Despite falling short, Ethereum has managed to avoid a downward trend by trading sideways and recording lower highs.
According to Monday’s trading session, Ethereum was met by a selling spree that forced it to decline past the 23.6 Fibonacci retracement level and the first significant support level at $3,369 and $3,327, respectively. Fortunately, today’s morning session saw the crypto coin move past these price levels.
ETH 4-hour chart
Ethereum’s 4-hour chart sheds light on the formation of a falling hammer. Like in most cases, whenever a falling hammer forms, it signifies the start of a bullish run even though it forms amid a downward price movement. 2 downward-sloping trend lines form the hammer by linking several lower highs with lower lows. Usually, a price surge occurs before the trend lines merge. Investors should note that they should be on the lookout for the price to move above the upper trend line. This will signify the start of a breakout and the stop of the bearish momentum. Additionally, Ethereum’s price surge is supported by the recent upsurge in trading volumes.
At the time of writing, the least resistant route appears to be upwards based on the information derived from the Relative Strength Index (RSI). If Ethereum’s RSI position lands at 50 before the close of trading today, it will add weight to the ongoing bullish outlook. Additionally, now that Ethereum has moved past the $3,500 mark, bulls appear to be coming back to its market, a move that is likely to push it towards the $4,000 mark.
Although key indicators show Ethereum is about to turn bullish, it is worth noting that the Moving Average Convergence Divergence indicator is speaking a different language. At present, the blue MACD line is hovering way below the Signal line, indicating the coin is still bearish.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.