- Ethereum price remains sidelined for the third consecutive day, stuck in a bearish chart setup following a two-week downtrend.
- DMI and MACD remain modestly weak, with muted market activity despite last week’s multi-month trendline breakdown.
- A month-old rising wedge reinforces the bearish bias, but the 50-day EMA and lower Bollinger Band converge to offer strong support.
- Ethereum’s short-term pullback looks overdue, but the broad bullish outlook prevails.
Ethereum (ETH) price stays defensive near $4,300 for the third consecutive day, as sellers flex muscles within a bearish chart set-up amid weak momentum early Wednesday.
Adding strength to the downside bias, the ETH sustains the last week’s break below the ascending trend line from late June. Further, the Directional Movement Index (DMI) and Moving Average Convergence Divergence (MACD) momentum indicators also send weak signals, suggesting further grind toward the south.
Meanwhile, a pullback in trading volume since Monday, combined with steady market capitalization, also appears to be teasing Ethereum sellers amid sluggish markets. According to Santiment, ETH’s daily trading volume retreats from a week’s high, down for the second consecutive day to $30.21 billion, while the market cap remains sidelined around $522.53 billion.
Furthermore, a month-old “rising wedge” bearish chart formation on the four-hour (4H) chart joins the U.S. Dollar’s corrective bounce to lure the ETH bears.
Still, a convergence of the 50-day Exponential Moving Average (EMA) and the lower Bollinger Band (BB) appears to be a tough nut to crack for Ethereum sellers to retake control.
Hence, a short-term pullback in the ETH price appears overdue, but the broader bullish outlook remains intact.
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Ethereum Price: Daily Chart Points To Slow Fall
Ethereum keeps the last week’s downside break of the two-month-old ascending trend line, now resistance near $4,520, with bearish confirmation from the MACD. However, the DMI shows all three lines — ADX (Average Directional Index, red), D+ (Upmove, blue), and D- (Downmove, orange) — below the 25.00 neutral level, signaling weak momentum. Notably, D+ leads while ADX lags, challenging strong selling pressure.
With this, the ETH’s slow grind toward the $4,100-$4,090 support confluence, comprising the 50-day EMA and the lower BB.
Also acting as short-term downside filters are the lows marked during late August around $4,070-$4,065.
Below that, July’s peak of $3,941 and the 100-day EMA of $3,648 could stall the ETH bears before directing them to the 200-day EMA of $3,223 and a five-month rising support line near $3,090, acting as the final line of defense for the bulls.
Alternatively, Ethereum recovery could initially face the middle BB hurdle of $4,437 before the support-turned-resistance surrounding $4,520.
In a case where the ETH bulls manage to keep the reins past $4,520, the early-month peak of $4,782, as well as the all-time high (ATH) of $4,954 and the $5,000 psychological magnet, will gain the market’s attention.
Ethereum Price: Four-Hour Chart Appears More Promising
Ethereum portrays a month-old “rising wedge” bearish chart pattern on the four-hour chart, currently between $4,920 and $4,280.
Also acting as a short-term trading filter is the 200-bar EMA of $4,261 and a descending resistance line from August 27, near $4,400.
It’s worth noting that the MACD signals are sluggish compared to the daily chart, whereas the DMI hints at a slightly upbeat momentum, defending the buyers.
Still, an ETH’s downside break of $4,261 will make it vulnerable to approach the rising wedge’s theoretical target surrounding $3,500.
During the anticipated fall past $4,261, the resistance-turned-support line from late July, near $3,980, could offer an intermediate halt.
Conclusion
Ethereum is likely to carry its gradual downtrend, backed by last week’s trendline breakdown and downbeat momentum indicators. However, $4,100 is the key support to watch for determining the altcoin’s further downside. Hence, the ETH traders should remain cautious with looming short-term downside risks, even if its broad uptrend is likely to prevail.
Also read: Cryptocurrency Weekly Price Prediction: BTC, XRP Rebound, But ETH Lags, amid Fed Rate Cut Buzz
