- Ethereum price stalls a two-day uptrend, with 50-day EMA testing bulls at a one-week high.
- Momentum indicators shift away from bearish bias, while recovery from the 100-day EMA and lower BB keeps ETH buyers optimistic.
- Four-hour chart highlights $4,275 as the final defense of Ethereum bears.
- ETH rebound requires a small boost to regain upside momentum as sellers lose market grip.
Ethereum (ETH) bulls take a breather at a one-week high, stalling two-day uptrend around $4,180 early Tuesday.
Also read: Ethereum News Today: BlackRock Dumps $206M ETH, But Bulls Hold Strong
In doing so, the second-largest cryptocurrency struggles with the 50-day Exponential Moving Average (EMA) resistance. Still, the ETH’s successful rebound from the 100-day EMA, coupled with a weakening bearish bias from the Directional Movement Index (DMI) and Moving Average Convergence Divergence (MACD) momentum indicators, keeps buyers optimistic.
Additionally, strong trading volume and an unimpressive pullback in market capitalization (market cap) also reinforce the upside bias for the ETH coin. According to Santiment, Ethereum’s daily trading volume hits a four-day high of $39.28 billion, whereas the market cap retreats from a week’s high to $505.64 billion by press time.
With this, Ethereum’s latest retreat looks more like a healthy consolidation than a trend reversal, helping to reinforce the broader bullish trend.
Ethereum Price: Daily Chart Points To Easing Bearish Bias
Ethereum’s strong rebound from the 100-day EMA and lower Bollinger Band (BB), along with a weakening bearish bias in the MACD and DMI, supports the positive upside outlook.
That said, MACD’s histogram (red) seems to be easing in the last five consecutive days. On the same line, the DMI’s Downmove (D-, Orange) line eases from the highest level since April, marked last week, toward the 25.00 neutral level, suggesting the downside momentum is cooling off. Meanwhile, the ADX (Average Directional Index, red) and the D+ (Upmove, blue) line are both below the 25.00 neutral level, pointing to very weak upside bias.
However, a daily closing beyond the 50-day EMA hurdle of $4,213 becomes necessary to convince the ETH buyers.
Next, the middle Bollinger Band (BB) at $4,353 and the previous support-turned-resistance near $4,495 will serve as the last defense for Ethereum bears before the bulls take control.
As Ethereum bulls push past $4,495, a key resistance zone between $4,765 and $4,830, formed on August 13, poses a major challenge for those targeting a new all-time high (ATH) near $5,000. The recent ATH of $4,955 may also serve as an intermediate resistance on the way up.
Alternatively, the ETH pullback may aim for the $4,000 threshold before approaching the key $3,876-$3,873 support confluence, comprising the 100-day EMA and the lower BB.
Below that, the 200-day EMA and an ascending trend line from early April, around $3,425 and $3,312 in that order, will be critical levels that could determine the fate of Ethereum’s bearish trend.
Ethereum Price: Four-Hour Chart Highlights $4,275
Ethereum’s four-hour chart becomes interesting as it reverses from a convergence of the 100-bar EMA and a two-week descending trend line, close to $4,232. Also acting as a short-term upside is the 200-bar EMA near $4,275.
The DMI on the four-hour chart leans bullish, with the ADX and upmove lines above the 25.00 neutral level, while the downmove line (orange) stays below, indicating a strengthening bullish bias.
With this, ETH is likely to overcome the immediate upside hurdles beneath the $4,275, which in turn could propel prices toward a six-week horizontal resistance area surrounding $4,765-$4,830. Beyond that, the daily chart resistances could lure the buyers.
On the flip side, the middle BB of $4,088 can restrict short-term ETH pullback before the $4,000 threshold and the deeper levels discussed on the daily chart.
Conclusion
Ethereum’s latest pullback shows weak momentum from indicators, while strong technical levels stand firm against a potential bear return. However, for ETH’s upside bias to strengthen, a fundamental catalyst is needed to push bulls toward early-September peaks and set sights on a fresh all-time high (ATH).
Also: Crypto Weekly Price Prediction: BTC, ETH & XRP all Tumble as U.S. Data Fuels Dollar, NFP Eyed
