Ethereum Is In A Narrow Range And Is Approaching A Possible Crash

Jan 08, 2024 at 15:50 // Price
Coin Idol

The price of Ethereum (ETH) has ended its upward trend. Price analysis by

Ethereum price long-term analysis: fluctuation range

After the price drop on January 3. Ether fell below the moving average lines during the price dip on January 3, but failed to recover back above the 21-day SMA. Since January 4, the price of the cryptocurrency has been between the moving average lines. 

The 21-day SMA or resistance at $2,300 is currently holding back the uptrend. If the moving average lines are broken, the largest altcoin will develop a trend. For example, a downtrend will resume if the bears break below the 50-day SMA and negative momentum is maintained. Ether's current market value stands at $2,229.50. The moving average lines represent the trading and containment boundaries for ETH/USD in the interim.

Analysis of the Ethereum indicators

The price bars on the 4-hour chart are below the moving average lines. The resistance at $2,230 or the 21-day SMA continues to limit the upward movement. The altcoin will continue to fluctuate for a few more days, as shown by the cryptocurrency's price bars on the daily chart, which are located between the moving average lines.

Technical indicators:

Key resistance levels – $2,200 and $2,400

Key support levels – $1,800 and $1,600

ETHUSD_(Daily Chart) – Jan.08.jpg

What is the next direction for Ethereum?

Ethereum is trapped between the moving average lines. The bears failed in their two attempts to break above the 50-day SMA. The extended tail of the candle indicates strong buying at the 50-day SMA. The 50-day SMA and the current support are currently being guarded by the bulls. The price action on either side of the moving average lines is limited by the doji candle.

ETHUSD_(4-Hour Chart) – Jan. 08.jpg reported before that the largest cryptocurrency fell  to a low of $2,097 on January 3, but investors bought the dips. Ether has now recovered and is currently at $2,249.50. 

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Readers should do the research before investing in funds.

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