Based on the ETHUSDT 4-hour chart, here is a technical analysis:
1. Current Price Trend
The price has been declining, with lower highs and lower lows, indicating a downtrend.
The price is currently around $2,500, which is close to the recent low of $2,481.44. This might act as a short-term support level.
2. Moving Averages (MA)
The MA(7) (yellow line) is below the MA(25) (pink line) and MA(99) (purple line), suggesting bearish momentum.
The shorter MA (MA(7)) crossing below the longer MAs confirms the downtrend.
The price trading below these MAs also suggests that sellers are currently in control.
3. Relative Strength Index (RSI)
The RSI(6) is around 27.20, which is in the oversold territory (below 30).
An oversold RSI could indicate a potential bounce-back or consolidation if the price finds support.
4. Volume Analysis
Recent high red volume bars indicate strong selling pressure.
However, current low volume might imply that sellers are losing strength, which could result in price consolidation or a potential reversal if buying interest appears.
5. Support and Resistance Levels
Support: The previous low around $2,481.44 could act as support. If the price fails to hold this level, further downside might be expected.
Resistance: The recent high at approximately $2,724.65 serves as immediate resistance if there is a reversal.
6. Price Action Prediction
Given the downtrend, the price may continue to test the support level near $2,481.44. If it holds, there could be a consolidation phase or minor bounce.
If the support is broken with high volume, the price may decline further, with possible support at lower levels.
If buying interest appears and the RSI moves above 30, it might signal a short-term rally toward resistance levels.
Summary
The current price action indicates a bearish trend with oversold conditions. Watch for a potential bounce if the support holds, but maintain caution as the downtrend may continue if selling pressure resumes.
