Ethereum Barely Hangs On To The $4,000 Level: What Does This Mean?

Ethereum ETH/USD shares are trading slightly lower Thursday as the crypto market is moving sideways. Ethereum is hanging on to the $4,000 level and is seeing if it can cross back above and continue to hold this area as support.

Ethereum was down 0.76% at $4,028.68 Thursday afternoon at publication.

Ethereum Daily Chart Analysis

• Ethereum is hanging on to the $4,000 level and trying to hold it as support after breaking out of what traders call an ascending triangle pattern. If this level can hold, the crypto may continue on its bullish trend.
• The crypto trades below the 50-day moving average (green) but above the 200-day moving average (blue). This shows the crypto looks to be in a period of consolidation and the 50-day moving average may act as resistance, while the 200-day moving average may hold as support.
• The Relative Strength Index (RSI) has been consolidating sideways and sits at 46 on the indicator. The sideways movement around 50 on the RSI shows there have been relatively equal buyers and sellers throughout the past couple of weeks.

What’s Next For Ethereum?

Ethereum has climbed back up to the $4,000 level and is looking to hold above it as an area of support. If this area can hold as support again, the crypto could resume its bullish climb. This and crossing above the 50-day moving average again are what bulls are looking to see in the coming weeks. Bears want to see the crypto fall below the 200-day moving average as well as the higher low trendline for a possible strong long term downtrend to form.

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