Ethereum Is Dipping, But Here's Why Holding This Key Level Is A Great Thing

Ethereum ETH/USD is trading lower Tuesday amid a cryptocurrency market that is dipping lower.

Ethereum looks to have bounced off of support where it previously has found resistance. This is a great sign showing that buyers are stepping in where sellers once did.

Ethereum was down 5.9% at $4,213.92 at press time.

See Also: Is Ethereum a Good Investment?

Ethereum Daily Chart Analysis

• Ethereum looks to have broken out of what technical traders call an ascending triangle pattern and now is testing the previous resistance as an area of support.
• The $4,000 level is now a possible area of support on the Ethereum chart. This has been an area the cryptocurrency has struggled to cross above in the past. The higher low trendline may also continue to hold as support further in the future.
• The cryptocurrency trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating it looks to have bullish sentiment.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) dipped lower and moved down to 45 on the indicator. This shows a strong amount of sellers entered into the cryptocurrency and as it sits the selling pressure is outweighing the buying pressure.

What’s Next For Ethereum?

Bullish traders want to see Ethereum be able to hold the $4,000 level as support now and consolidate for a time above it. This may let the next bull run happen and for Ethereum to go on and possibly make further all-time highs.

Bearish traders want to see Ethereum be unable to hold the $4,000 level as an area of support. Bears would like to see Ethereum fall back to the higher low trendline and then be able to fall below it for a possible change in long-term trend.