{"id":612104,"date":"2024-06-08T18:00:07","date_gmt":"2024-06-08T18:00:07","guid":{"rendered":"https:\/\/wncen.com\/?p=612104"},"modified":"2024-06-08T12:08:38","modified_gmt":"2024-06-08T12:08:38","slug":"ethereum-drops-below-4-hour-sma-analyzing-the-impact","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/ethereum\/ethereum-drops-below-4-hour-sma-analyzing-the-impact\/","title":{"rendered":"Ethereum Drops Below 4-Hour SMA: Analyzing The Impact"},"content":{"rendered":"
Ethereum<\/span><\/a> (ETH), the second-largest cryptocurrency by market capitalization, has recently seen its price fall below the 4-hour Simple Moving Average (SMA). This technical development is noteworthy for traders and investors, as the 4-hour SMA is often used to gauge short-term market momentum.<\/span><\/p>\n When a cryptocurrency’s price drops below this moving average, it can signal a potential shift in market sentiment from bullish to<\/span> bearish<\/span><\/a>. This could imply increased selling pressure and a possible downward trend continuation. The implications of this price movement extend beyond technical analysis, as broader market conditions, investor behavior, and fundamental factors also play a crucial role in shaping Ethereum’s future trajectory.<\/span><\/p>\n In this article, we will be exploring ETH’s potential price action with the help of technical indicators.<\/span><\/p>\n Firstly, it can be observed that ETH’s price in the 4-hour timeframe has experienced a drop below the 100-day SMA after moving in a consolidation manner for a while.\u00a0 It should be noted that most times when an asset drops below SMA, it could indicate <\/span>a short or long-term move in that direction.<\/span><\/a><\/p>\n <\/p>\n Additionally, the Relative Strength Index (RSI) indicator also confirms that Ethereum might move in the downward direction for a while as the RSI line has crossed below 50% and could trend there for a while.<\/span><\/p>\n From the daily chart, it can be noticed that Ethereum is attempting to make a move toward the 100-day SMA after dropping a bearish candlestick on the previous day. At this point, it can be suggested ETH dropped to test the 100-day SMA before making an upward move again.<\/span><\/p>\n <\/p>\n Finally, the RSI line from the RSI indication is currently dropping out of the overbought zone toward 50% indicating that there is still room for ETH to move downward.<\/span><\/p>\n As of right now, Ethereum is attempting to move downward toward the daily SMA, If it drops below, it will continue to move downward toward the $2,865 support level. Furthermore, it can drop even more to test the $2,147 support level if it drops below the aforementioned level.<\/span><\/p>\n However, if ETH’s price touches the SMA and bounces back, it will move upward toward the $4,099 resistance level. Also, should it break below this resistance level, it will continue to move up to test the $4,863 level. <\/span>ETH<\/span><\/a> may move to create a new high if it rises above the $4,863 level.<\/span><\/p>\n As of the time of writing, ETH’s price was trading at around $3,694 and was up by 0.41% with a market capitalization of over $443 billion and a 24-hour trading volume of over $18 billion. Its market capitalization is down by 2.97%, while its trading volume is up by 39.28% in the past day.<\/span><\/p>\nEthereum Price Condition On The 4-Hour Chart<\/strong><\/h2>\n
ETH Price Projection<\/strong><\/h2>\n