Ethereum has become corrective but still holding the bullish bias over $2,450 to $2,540 price area. Ethereum price falls ahead of significant improvement to ETH network. Will the price decline further downside in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s ETH/USD Technical Analysis.
August 4, 2021, | AtoZ Markets – ETH fell about 1% today during the Asian session ahead of a technical upgrade to its basic Ethereum blockchain that would adjust the manner in which exchanges are prepared. Ethereum is currently trading around $2,617 price area and trying to recover higher. After an impulsive bullish momentum, the price faced strong resistance around $2,670 to $2,700 key area and had a daily bearish candle close below it. As per the current price action context, the price may climb upside towards $2,670 to $2,700 key resistance area again in the coming days.
Ethereum Price Falls as the Investors Psychology Worked Negatively
ETH is currently residing near $2,617 price area and trying to climb higher. However, the price has successfully broken above $2,450 to $2,540 range area with an impulsive 4-hour bullish candle.
Image: ETH 4 Hour Chart
According to the 4-hour chart, Ethereum price falls and currently trading around $2,617 price area. As per the current price action, the price may recover higher towards $2,670 to $2,700 price area again in the process. So, if the price recovers upside towards $2,670 to $2,700 price area and rejects with a bearish candle, the bears may regain momentum and push the price down towards $2,540 to $2,530 price area in the coming days. On the other hand, if the price can break above $2,670 to $2,700 key resistance area with an impulsive bullish candle, ETH may climb higher towards $2,860 to $2,900 price area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price, which may pull the price down as a mean reversion after reaching $2,670 to $2,700 resistance area. Moreover, the MACD lines are still residing over the 0.00 level and may have a bullish crossover. It indicates that the bulls may continue further upward in the process.
ETH May Retrace Downside
According to the daily chart, Ethereum falls as the price requires a downside retracement. As per the current scenario, if the price climbed upward towards $2,670 to $2,700 resistance area and had a daily close below it, there is a high chance that the bears may regain momentum and push the price down towards $2,400 to $2,350 price area in the coming days. Alternatively, if the price breaks above $2,670 to $2,700 price area with a daily bullish candle, the price may recover higher towards $2,860 to $2,900 price area in the process.
Image: ETH Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price, which may pull the price down as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead.
To conclude, after an impulsive bullish rally, the price requires a downward retracement at least towards the dynamic level. A daily close will help to identify the definite momentum in the coming days.