• Key Support Level: $ 3,850
• Major Resistance Levels: $ 4,400; $ 5,075

ETH has given us many warning signals that a correction is in progress.

ETH broke below a rising wedge (which is a bearish formation) and the MACD formed a bearish cross in the daily timeframe. Today those signals materialized as the price fell 10%, pushing ETH below the support at $ 4,400.

It is important to see how today’s candle closes before you analyze any further. Until then, ETH has strong support at $ 3,850. As long as this level holds, the cryptocurrency will remain bullish in the long term.

ETH / USDT daily chart | Source: TradingView

Technical signals

Volume: Volume increases when prices fall, suggesting that selling pressure is very strong. If the bears are not satisfied with the current price level, ETH could continue to fall to the critical support below, albeit less dramatically than it is now.

RSI: The RSI is falling and is currently right at line 50. A cut below this line signals that ETH will continue to correct.

MACD: MACD has formed a bearish cross and is sloping down. This favors the continuation of the correction.

ETH / USDT daily chart | Source: TradingView

Perspectives

Both the price movement and the technical signals favor a continuation of the ETH correction. Hence, ETH is likely to retest the critical support at $ 3,850.

However, the continuous decline over the past two days has pushed the short-term indicators into oversold territory. As a result, there may be a short-term rally before the price corrects further.

In this case, the key level to look up at is $ 4,400.

You can see the ETH price Here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Cryptopotato

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page