Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has recently dropped below the 4-hour Simple Moving Average (SMA). This technical indicator is important for traders and investors as it can signal a shift in market sentiment from bullish to bearish. This could lead to increased selling pressure and a continuation of a downward trend.
When a cryptocurrency’s price falls below the SMA, it may indicate a short or long-term move in that direction. The Relative Strength Index (RSI) also suggests that Ethereum could trend downward for a while. However, the daily chart shows that Ethereum may be testing the 100-day SMA before potentially making an upward move.
As of now, Ethereum is trading around $3,694 with a market capitalization of over $443 billion and a 24-hour trading volume of over $18 billion. If Ethereum continues to move downward, it could test support levels at $2,865 and $2,147. On the other hand, if it bounces back from the SMA, it could move towards resistance levels at $4,099 and $4,863.
Overall, Ethereum’s price projection depends on how it interacts with these key levels in the coming days. Traders and investors will be closely watching these technical indicators to gauge Ethereum’s future trajectory.