Ethereum Price Prediction – Bear Trap Brings sub-$4,000 Support Levels into Play
At the time of writing, Ethereum was down by 9.51% to $4,095.
Your capital is at risk
Ethereum rose to an early morning high $4,556 before sliding to a late morning low $4,005.
The extended sell-off saw Ethereum slide through the first major support level at $4,332 and the second major support level at $4,139.
Steering clear of sub-$4,000 levels and the third major support level at $3,833, Ethereum revisited $4,130 levels before easing back. The second major support level at $4,139 pegged Ethereum back in the late morning.
For the Afternoon Ahead
Ethereum would need to move back through the major support levels and the day’s $4,444 pivot to bring the first major resistance level at $4,637 into play.
Plenty of support would be needed, however, for Ethereum to breakout from the morning high $4,556.
Barring an extended crypto rally through the afternoon, the first major resistance level would likely cap the upside.
In the event of a broad-based crypto rebound and rally through the afternoon, Ethereum could test resistance at $4,700 levels. The second major resistance level sits at $4,749.
Failure to move back through major support levels would bring the third major support level at $3,833 back into play.
Barring an extended sell-off through the afternoon, however, Ethereum should steer clear of the 23.6% FIB of $3,738.
Looking beyond the support and resistance levels, we saw the 50 EMA narrow on the 200 EMA.
More significantly, we also saw the 100 EMA converge on the 200, delivering the heavy blow this morning.
Through the 2nd half of the day, a bearish cross of the 100 through the 200 EMA would bring sub-$4,000 levels into play.
For the bulls, key through the late morning and early afternoon, however, would be to move back through the day’s $4,444 pivot to avoid a day deeper in the red.