Ethereum has been bearish for several weeks before the king of altcoins crossed the $1,000 mark. It has surged nearly 9% in the past 24 hours, but over the past week, the coin has recorded double-digit losses of 22%.
The coin even dipped below the $900 mark, but ETH moved up on the charts as purchasing power slowly recovered. There is no certainty that Ethereum will continue to move north as the technical outlook remains risky.
The bears are still in control of the market, and if the coin turns down from the $100 mark, the next trading area is between $700 and $900. Buyers can then enter the market again and recoup the price of the asset. If ETH falls to the aforementioned trading zone, buyers can enter the market again. ETH has been completely bearish for over ten weeks.
Ethereum Price Analysis: Four-Hour Chart
At the time of writing, ETH is rising on its charts after hitting a low of $900. The asset is priced at $1090 on the four-hour chart. The overhead resistance for the coin lies at $1,200. Another blow from the sellers will lead the price down towards the $800-900 mark.
On the four-hour chart, Ethereum edged lower again, indicating bearish influence in the market. Asset volumes fell, which meant fewer purchases. The red volume bars again point to bearish price action.
As ETH surged on the charts, so did the buying power of the market. On the four-hour chart, the coin is seeing a drop in purchasing power, indicating that the price may fall further. The RSI is nearing the 50 mark after noticing a dip.
The RSI is still positive, which means that the buying power is outweighing the selling power. As purchasing power emerged, the price of ETH climbed above the 20-SMA line accordingly. Price above the 20-SMA means that buyers are responsible for driving price momentum.
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A brief relief rally led buyers to start returning to the market. The moving average is converging and diverging, which depicts the same drawn bullish signs of price direction and change. The MACD experienced a bullish crossover and a flashing green signal bar, which was interpreted as a buy signal for the coin.
If buyers continue to dominate ETH, it may soon be targeting its immediate price resistance. Chaikin Money Flow also paints a recovery on the chart. This indicator describes the state of capital outflows and inflows. As of press time, CMF is parked on a half-line representing ETH’s equivalent capital inflows and outflows.