Cryptocurrencies

Analysis: Ethereum back at support at $ 3,700, will the price remain strong?


Ethereum has again arrived at a place that proved important several times. Here the coin is still finding support so far, but breaking the zone could throw a spanner in the works. Is the currency holding strong? Let’s look at the graphs.

Banner Ethereum 1

The most important price levels

We start the analysis with a look at the daily chart. Here each candle represents 24 hours, giving us a nice picture of the past price action. We also see the most important price levels of Ethereum here: the gray, blue and red zone.

The gray and blue zones are still far away from the price at the moment, but these levels will become important if the currency ever finds its way back. Hopefully this scenario does not have to play out and the currency can simply go up, but of course the chance always remains.

In any case, it is good to know that if the currency falls through the red zone (about $ 3,700), things can happen quickly. The large green candle – with which Ethereum went from the blue to the red zone – leaves no supports or resistances. This could cause an equally sharp decline, but that will only happen if the currency does not hold strong – and that chance is small.

So far we can’t really say that Ethereum looks weak. The coin does not necessarily make higher points, but also not lower ones. The coin bounces quietly away from the red zone each time, and seems to be preparing for a bigger move.

Short-term rate

To analyze this better, let’s also take a look at the 4-hour chart. Here each candle represents 4 hours, which gives us a good idea of ​​the price in the shorter term. We can also get a better look at the reactions to the red zone.

As I mentioned earlier, the coin does not make convincing higher or lower points. The currency appears to be becoming less and less volatile, just above an important price point. It usually indicates that the coin is getting ready for a bigger move, we just don’t know which way it will move yet.

Of course, the chance of a rise is greater, since there is mega support underneath. It actually remains to be seen what the price will do here. I would like to see the coin start a trend by moving past its previous high or previous low. Only then can we say more about the direction (so that we can highlight the targets in the following analyses). Therefore, keep a close eye on the trend of the price and these levels.

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