entered a recovery mode after falling, reaching support at 1685. The recovery brought the crypto back above the 2000 level, but it remains well below the downside resistance line drawn from the April 3rd high. So, while we see some further progress, we will remain negative on the short-term outlook.
The recovery could continue for a while, with the cryptocurrency perhaps surmounting the 2195 barrier marked by the May 10th inside swing low. The bears could still take charge near the 2455 resistance zone, marked by the May 10th and 11th highs, and a possible dive could take them to the 1865 barrier, formed by an intraday swing formed yesterday afternoon – Low is marked.
A break below this barrier could open the way towards the daily low at 1685, a break of which would confirm an imminent lower low on the daily chart and could see scope for declines towards the 1395 territory, which provided support back in February 2021.
Looking at our short-term oscillators, we see that the RSI is above 30 and pointing up, while the MACD, although negative, is above its trigger line and pointing north. Both indicators are spotting a slowing down pace and support the notion of further recovery ahead of the next leg to the south.
To abandon the bearish case and investigate whether the bulls have stolen all the bears’ swords, we would like to see a decisive break above the 2745 barrier. This zone acted as a key support between April 27th and May 3rd and its break may also confirm the break of the downline drawn from the April 3rd high.
The bulls may then target the 2975 zone, which acted as a key resistance on April 28th and May 4th, the break of which could open the way to the April 21st 3175 high. Another break above 3175 could see scope for advance towards the 3305 or 3400 zones marked by the highs of April 8th and April 4th respectively.
Ethereum Technical analysis of the 4 hour chart.
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