ETH price is expected to retest the low $ 3,900 area after the dead cat popped open on Saturday
ETH, the second largest cryptocurrency by market cap, is trading on the verge of a slide this Sunday, partially reversing Saturday’s impressive rebound from a weekly low of $ 3,835.
At press time, ETH price is up 0.2% for the day to trade around $ 4,043 with no lack of upside momentum given the lackluster performance of other coins.
ETH bears are trying to continue the recent downtrend from the 6-day high of $ 4,490 hit last Thursday. Weak market conditions over the weekend could even push prices down.
ETH’s path of least resistance seems to be over
The ETH 4-hour chart shows that bullish momentum is wearing off as it encounters strong resistance at the 21 simple moving average at $ 4,117.
If the bulls break this level, the price can ricochet off and test $ 4,169 – which equates to the somewhat pessimistic 50 SMA.
The next upside target is the 100 SMA at $ 4,273, which is below the horizontal 200 DMA at $ 4,350 that the bulls need to break.
ETH 4-Hour Price Chart | The source: FXStreet
However, the relative strength index (RSI) remains below the center line, suggesting that the bearish trend is likely to continue.
Hence, ETH sellers can look to retest the support on the uptrend line, which is currently at $ 3,872.
If the ETH price falls significantly below this level, a breakdown from the one-week symmetrical triangle could be confirmed.
The ETH bears will then prepare for another decline towards the December 4th flash crash low of $ 3,575.
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