Ethereum Price Forecast: ETH Faces Strong Resistance At The $1,130
Daily Ethereum ETH Price Forecast
- Ethereum has dipped after meeting resistance at the $1,130 level.
- The 20-bar SMA ($1,070) in the 4-hour chart offers moderate resistance.
Ethereum bulls took control of the market this Wednesday and pushed the price of Ethereum up from $1,050 to $1,130. However, following this bullish fightback, the sellers have promptly taken back control of the market.
ETH Bulls Fail To Take Control Of $1,130 Line
Ethereum’s price dropped drastically between Sunday and Tuesday as it crashed from $1,280 to $1,045. The price of Ethereum managed to rise up to the $1,130 resistance barrier this Wednesday, before it crashes to $1,106. Prior to Sunday’s bearish price action, the relative strength index (RSI) was trending in the overbought zone before it dipped down into the neutral zone.
Image: ETH/USD daily chart
Upon looking at IntoTheBlock’s “In/Out of the Money Around Ethereum Price,” we can see that the $1,130 resistance is a very strong barrier. Previously at this level, 152,300 addresses had purchased 7.4 million ETH tokens.
On the downside, there is a moderate support level of Ethereum at $1,070, which coincides with the 20-bar SMA in the 4-hour price chart. In fact, the 4-hour price chart has some interesting observations for us.
Image: ETH/USD 4-hour chart
The first thing that you will notice is that the price of Ethereum is sandwiched between the 50-bar SMA on the upside and the 20-bar SMA on the downside. At the same time, the Bollinger band has constricted by a considerable amount. This shows us that the Ethereum price is currently going through a consolidation period and low volatility.
Tyler Winklevoss: Ethereum Is “Decentralized Amazon Cloud Computing”
Tyler Winklevoss, the CEO of Gemini crypto exchange, recently referred to the Ethereum network as “Decentralized Amazon Cloud Computing.” Winklevoss took to Twitter to describe the main use cases for various well-known cryptocurrency assets.
He went on to explain to Mark Cuban why decentralized finance (DeFi) matters.
Ethereum Price is Expected To Hit These Levels
If the price of Ethereum breaks above the $1,130 resistance barrier, it should hit the $1,200-level. On the downside, we have the 20-bar SMA ($1,170) in the 4-hour chart which should provide some support. However, if the Ethereum price breaks below, you can expect Ethereum to fall to the 20-day SMA ($975).