- Analyst Ali predicts 6k for Ethereum once prices break past $4.1k.
- Ethereum prices struggling at $3.6K, 4.6% down in a day.
- Ethereum TA and market sentiment.
Ethereum price is at a very critical moment with a resistance at the $4,100 level. Market participants and analysts are keenly watching for a move over which will lead to a strong move towards $6,000.
Ethereum clearing $4,100 will be ‘magnetic’ and ‘6,000 will be the next obvious target’, says analyst ‘ali’ that has made a bold prophecy.
Ethereum price is at $3,650 now, down 4.75% over the past 24 hours. This most recent downturn is part of a bigger trend we’ve observed in the past week as Ethereum has lacked upward momentum against changing market sentiment.
Trading volume has skyrocketed. This reflects a busier-than-ever trading volume in response to price fluctuations and news from the market.
Technical Analysis
Ethereum’s price chart has resistance and support levels that fluctuate, and the technical analysis of that reveals this.
Ali’s first chart shows Ethereum’s price locked between the rising channel and a set series of higher lows and higher highs; a bullish sign in traditional markets.
But resistance at $4,100 has been strong. Many bids to break beyond it have been repelled leading to price corrections.
In contrast, a downtrend is depicted on Ethereum charts. Lower highs and lower lows occur within a downward-sloping channel (as shown by the blue-shaded area).
During the depicted period, this channel is classified as being bearish in the market sentiment. A sharp price drop is marked with a significant red candle near the right end of the channel. Some recovery is represented by a smaller green candle.
It seems that the resistance comes in from the upper end of the descending channel and there have been reversals back downwards.
If the lower boundary of the channel is acting as a support level for ETH price decrease, once price decreases slow down or reverse, the channel’s lower boundary may be the area of support.
Other indicators such as the Money Flow Index (MFI) at the bottom of the chart combining price and volume to measure trading pressure reads 25.57 at the end of the period.
When the MFI reading is below 20, then it signifies an oversold condition. Or there is a chance that the price may reverse or stabilize.
MFI shows decreasing values as such, which can be seen as decreasing selling pressure during the downtrend.
Future Outlook for Ethereum
If Ethereum price gets past the $4,100 resistance, it could spike upwards towards $6,000, if all things go as per the plan.
That scenario would prompt further buying activity and could establish what many refer to as a self reinforcing upward trend.
However, a failure of Ethereum price to rise above the $4,100 levels may cause a retracement down to lower support levels. This may put the bull trend structure elucidated in the charts to the test.
Fibonacci retracement and historical support zones suggest that such a correction can result in prices heading back to lower levels close to levels around $3,375 or as low as $3,000.
Source: thecoinrepublic.com
