Ethereum (CRYPTO: ETH) shares are trading lower Wednesday as the crypto market is moving down. Ethereum has fallen below a key support level it previously held near the $4,000 range and is falling toward the 200-day moving average.
Ethereum was down 4.54% at $3,573.14 at publication Wednesday afternoon.
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Ethereum Daily Chart Analysis
- Ethereum has fallen back below the $4,000 level and is now trading within the ascending triangle pattern once again. The crypto could bounce near the 200-day moving average, but if it drops below it could fall back toward the higher low trendline.
- The crypto trades below the 50-day moving average (green) but above the 200-day moving average (blue). This shows the crypto looks to be in a period of consolidation and the 50-day moving average may act as resistance, while the 200-day moving average may hold as support.
- The Relative Strength Index (RSI) has been moving sideways and slowly falling lower and sits at 38. This shows that sellers have been moving into the crypto and the RSI is approaching the oversold region.
What’s Next For Ethereum?
Ethereum has fallen below the support line giving it a bearish look and it trends lower. Ethereum will keep a longer-term bullish outlook as long as it is able to stay above the higher low trendline. Bullish traders are looking to see Ethereum bounce at the 200-day moving average and begin to climb higher once again. Bears would like to see the crypto fall below the 200-day moving average and then go on to fall below the higher low trendline as well. This could cause a further bearish movement and the start of a long term downward trend.
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