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The crypto market had kicked off to a shaky week, with the price of Bitcoin sliding to $42,000 and Ethereum falling to $3,000. However, buyers were delighted to scoop up newly sold crypto-assets at bargain prices following the dip. Although the rebound is limited, the ETH price has sustained above the $3,400 level while recovering slightly from a market-wide drop last week. Ether remains the most widely traded Altcoin amongst the top 10 coins reaching the $4,384 all-time highs in May 2021. At the time of writing, ETH/USD is holding around $3,400 and $3,450. Despite the recent Ethereum’s massive upgrade predicted to be very bullish in the long-term outlook, its upside bias holds down under $4,000. The $ETH’s average gas prices (in GWEI) have decreased from 237 to barely 88 after the correction. Given that the rate at which tokens get minted has slowed as per the deflationary effect of the EIP-1559 protocol in the London Hard Fork, it will become slightly more scarce. After the upgrade, investors have continued to watch out for reduced gas fees and a price breakout.
Key Levels
Resistance Levels: $4,000, $3,700, $3,500
Support Levels: $3,200, $3,000, $2,700
ETH/USD Daily Chart: Ranging
ETH/USD Daily Chart
Ether’s price is firm from Monday’s low at $3,111, amid the prior week’s market-wide drop. ETH/USD has recorded small increases leaving the price at the top of its August ranges as Ether’s price dipped at the start of the week. It has quickly recovered its losses from yesterday close above the $3,400 level where it stays during the American open. And keeping price positive is the Relative Strength Index (RSI) floating at midline 50.
Perhaps the signal that risk sentiment remains fragile this week is the performance of ETH below the $3,500 to $4,000 zone. Until positive momentum returns above the zones, it will be hard to call a top in Ethereum’s rally overall. The price has traded above the moving average (MA 50) but has stayed below the $3,500 level. This scenario signals that the price for ETH might proceed into sideways trading above the $3,400 level.
ETH/USD 4-Hour Chart: Ranging
ETH/USD 4-Hour Chart
The ETH/USD price might continue to trade in a ranging position until a breakout occurs either way. The pair had gone above the $4,000 zone as it struggled to extend gains and started afresh decline from the $4,030 high. But so far, the bulls were able to hold above the $3,000 support during the last swing low at $3,009. Any more losses could open the doors for a move beneath the support zone.
On the 4-hour time frame, ETH/USD technical indicators show selling signals. The short-term moving averages (MA 50) and (MA 200) prepares to have a bearish crossing (a death cross), indicating the potential for a sell-off. However, it is not absolute while the price stays above the MAs as with other indicators such as the RSI trading in the positive. On the upside, an initial resistance is near the $3,500 level.
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