Published: Apr 1, 2025 at 05:45 AM
Updated: Mar 31, 2025 at 08:22 PM
- ETH faces strong resistance near $4,000, with $1,870.87 as crucial support.
- Momentum indicators point to continued selling unless a reversal emerges.
- Bulls must reclaim $1,900 to challenge resistance and spark a recovery.
Ethereum (ETH) is priced at $1,881.24, which declined 6.11% from yesterday. The biggest hindrance is the resistance at $4,000, but the price must be kept at support levels of $1,870.87 and $936.15. One can observe if Ethereum stabilizes or stays in the red.
The daily price chart from TradingView shows Ethereum’s recent decline from resistance at $4,000, demonstrating a long-term bearish trend. Ethereum’s price action confirms lower highs and lower lows, highlighting seller dominance since late 2021. The support zone at $1,870.87 has held firm multiple times, preventing deeper price declines, while resistance at $4,000 continues to cap bullish attempts.
Source: TradingView
Moving averages reflect a bearish sentiment, with the 50-day SMA crossing below the 200-day SMA, forming a death cross. The EMA shows a downward slope, confirming the ongoing bearish trend. This setup aligns with continued selling pressure as long as the price remains below these moving averages.
Momentum indicators paint a bearish picture, with the RSI at 40.77, nearing oversold territory but failing to recover. The MACD line remains below the signal line, reinforcing a bearish bias with histogram values confirming downward momentum. These indicators suggest continued selling pressure unless a bullish reversal emerges.
The Fibonacci retracement tool identifies key levels from the recent swing high to low, with the 0.786 level around $1,900 acting as a resistance. Price movements near this level face strong selling interest, preventing bullish continuation. Volume analysis shows increased activity during declines, reflecting strong bearish conviction.
A detailed breakdown from market analyst CryptosBatman on Twitter highlights a potential scenario where Ethereum heads lower to fill a bullish Order Block (OB) and Fair Value Gap (FVG) near $1,900. The analysis points to a possible dip to mitigate orders before a reversal. This strategy aligns with liquidity grab techniques, where prices dip to trigger stop losses before a bullish move.
Source: CryptosBatman
According to CryptosBatman, a decisive reaction at the OB and FVG zone could indicate a reversal or deeper correction. The presence of liquidity above this zone, marked by the triple-dollar-sign ($$$), suggests traders may target this area before rebounding. The setup hinges on price behavior near the 0.786 Fibonacci level.
This scenario emphasizes monitoring the OB and FVG zone for a potential bullish entry if buying interest emerges. A failure to hold this level could drive Ethereum toward deeper support levels, reinforcing the bearish outlook. Market participants must watch for confirmation signals to determine the next directional move.
Future price action hinges on the $1,870.87 support level, which could trigger a bullish reversal if defended. A break below this level may open the door to deeper corrections toward $936.15. Conversely, reclaiming the $1,900 resistance could set the stage for a potential rally.
Traders should closely monitor volume strength and price behavior around key levels. A confirmed bullish reversal would require a strong breakout above resistance with increased volume. Until then, Ethereum remains vulnerable to bearish momentum, with the potential for further downside.
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