Here's Why Ethereum Holding Above $4,000 Is Important

Ethereum ETH/USD is trading lower Thursday, alongside Bitcoin BTC/USD and the rest of the cryptocurrency market. Ethereum nears a key level that once held as resistance and now needs to hold as support for the run to continue throughout the rest of the year.

Ethereum was down 4.55% at $4,061.67 Thursday afternoon at publication.

Ethereum Daily Chart Analysis

• Ethereum broke out of what technical traders call an ascending triangle pattern and is now dipping toward the old resistance level now trying to hold it as support.
• The $4,000 level is now a possible area of support on the Ethereum chart. This area has been an area of resistance on the chart for months, but after finally crossing it and making new all-time highs the crypto may bounce near the level.
• The crypto trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto 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) has fallen the past few days and now sits at 41 on the indicator. This shows an increase in the amount of selling pressure throughout the past few days where sellers were able to overwhelm buyers.

What’s Next For Ethereum?

Bullish traders are looking for a bounce near the $4,000 level for the crypto to possibly start heading back higher. Bulls are then looking for higher lows for Ethereum to possibly uptrend further and make new all-time highs once again.

Bearish traders are looking to see Ethereum crack below the $4,000 level and be unable to cross back above it. Bears then want to see the crypto dip and fall below the moving averages and push below the higher low trendline. This could cause the crypto to really start a bearish push.

Photo: Executium via Unsplash