Ethereum (CRYPTO: ETH) is trading lower Tuesday amid a cryptocurrency market that’s taking a slight dip.
Ethereum was down 0.7% at $3,497.75 at publication time.
See Also: Is Ethereum a Good Investment?
Ethereum Daily Chart Analysis
- Ethereum has been getting closer to resistance, but saw a cool off day Tuesday. The crypto trades in what technical traders call an ascending triangle pattern.
- The $4,000 level is now a possible area of resistance on the Ethereum chart. This has been an area the crypto has struggled to cross above in the past. The higher low trendline has been somewhere the crypto has found support at in the past and may continue to.
- The crypto trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto looks to have had recent bullish sentiment.
- Each of these moving averages may hold as a possible area of support in the future.
- The Relative Strength Index (RSI) has been moving sideways the past few weeks and now sits at 54. This indicates that the stock is seeing slightly more buying pressure than selling pressure.
What’s Next For Ethereum?
Bullish traders are looking to see Ethereum continue to move higher and eventually break above the $4,000 resistance. Bulls are then looking for a period of consolidation above the $4,000 area for possible further bullish moves.
Bearish traders want to see Ethereum drop back down to the higher low trendline, break below it, and then be able to hold below the trendline. This could cause a possible change in trends and for a long-term downtrend to begin.