ETH recovers $ 4,000 after crash, hitting 3.5-year high against BTC – .

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ETH recovers $ 4,000 after crash, hitting 3.5-year high against BTC – .


The bad news is that after the crypto market crashed, ETH crashed at $ 3,470 on Bitstamp early Saturday morning UTC. However, the good news is that ETH showed strength and managed to recover most of the decline, regaining the critical support level at $ 4,000.

Key assistance levels: $ 4,000

Key Resistance Levels: $ 4,284, $ 4,500, $ 4,868 (ATH)

Despite Saturday morning’s market crash, which saw significant sell-offs from overexposed leveraged traders, Ethereum has managed to recover almost entirely, as of this writing.

This is an important signal for the market that ETH is holding firm against Bitcoin, which looks much weaker after this weekend crash. While ETH was able to quickly recover and recover the $ 4,000 milestone, the same cannot be said for Bitcoin.

For this reason, on the ETH / BTC chart, ETH just hit a higher high of 0.085 BTC, which is the highest level since May 2018. The all-time high against Bitcoin is around 0 , 15 BTC, and Ethereum seems on track towards this goal after breaking through the key resistance at 0.080 BTC, as well as a horizontal triangle pattern (as shown in the following chart)

Against the USD, ETH needs to stay above key support at $ 4,000 to maintain the bullish price action, then should face resistance levels at $ 4,284, $ 4,500 and $ 4,868 (ATH).

ETH / BTC chart by TradingView

Technical indicators

Trade volume: During the crash, the volume peaked. However, the recovery candle saw significantly fewer volumes. You better be careful because of this, especially once the price hits the first resistance at $ 4,284. In other words, the volume is not in favor of the bulls right now.

RSI: Daily RSI hit a lower low despite the crash. It is a sign of strength and gives hope for a speedy recovery.

MACD: The MACD was bullish before the crash but this quickly reversed due to the collapse as the moving averages retreated and the histogram moved into negative territory. If ETH stays above $ 4000, the MACD will likely return to bullish territory.

Chart by TradingView

Bias

The bias for ETH is neutral. It is too early to turn bullish and traders should be careful as any large rejection at resistance levels can cause the market to overreact due to the recent crypto market crash.

Short term price prediction for ETH

Ethereum’s rapid recovery above the psychological level at $ 4,000 is a key victory for the bulls and if they can hold it then confidence in ETH will return and create momentum for a rally. ETH should not close a daily candle below $ 4000. As long as this is so, ETH is well positioned for higher targets.

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Cryptocurrency Charts by TradingView.

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