Ethereum switches to short-term support with $ 5,000 calling

Ethereum is considering a short-term correction following a bearish cross on the MACD and a double top along the RSI. With the EMA tapes still showing a healthy position, ETH had a lot of defensive resources at its disposal. Once the selling pressure is relieved, expect ETH to move towards the $ 5,000 mark. At the time of writing, ETH was trading at $ 4.605, down 0.2% in the last 24 hours.

Ethereum daily chart

Source: ETH / USD, TradingView

Ethereum was approaching its short-term defense at the 78.6% Fibonacci Extension after exits continued to be seen within the broader market. Now the aforementioned support was reinforced by the daily 20-SMA (red) which added an additional cushion. If sellers drill below this confluence, the 50-SMA (yellow) level and the 61.8% Fibonacci level would help.

Based on the nature of ETH’s daily EMA tapes, the alt was well within an uptrend and large sell-offs are unlikely in such a situation. The last time these bands were reversed was during the May crypto crash. During the next up cycle, ETH would give way to targets of $ 5,018 and $ 6,038.

Reasoning

The RSI has formed two peaks within the overbought territory and has moved south for the past five days. The index could continue its trajectory before finding support at the midline. As mentioned above, the MACD showed a sell signal after recording a bearish crossover. The DMI was also close to an unfavorable crossover, which could generate more short-term selling pressure.

conclusion

Ethereum faced short-term problems, but its long-term trajectory was supported by the bullish nature of EMA Ribbons. Therefore, expect ETH to rebound from the 78.6% Fibonacci mark and work its way towards the $ 5,000 mark. In the event of ETH falling below $ 4,463, another defensive option was available at the 61.8% Fibonacci level.

This is a machine translation of our English version.

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