Looking at the Ethereum chart from a technical perspective on a daily basis, we are likely seeing a shift in market sentiment. The price rose significantly from April to August this year, while in September and October we saw a clear pullback, which led to a drop in price below $4,000. Currently, the price is below the 100-period moving average, marked with a green line on the chart below. The price also remains below the key zone of $4,200–$4,000, which, according to the Overbalance methodology, may indicate a possible trend reversal or the beginning of a larger correction. If this scenario is confirmed, the price may move towards support at $3,400, where the August low is located, or, if it breaks through permanently, even towards the $2,800–2,865 zone, where significant price reactions have occurred previously. On the other hand, a return of the price above the average and the $4,200 level could lead to a resumption of the upward trend. In that case, a move towards the recent highs in the $4,800 area would also be possible. At this point, however, this is not the base scenario.
Ethereum – D1 interval. Source: xStation
As for the lower H4 timeframe, we can see that the price is stuck in consolidation between $4,250 and $3,700. The lower limit of this consolidation is currently being tested, and if there is a downward breakout, the downward movement may accelerate. Otherwise, if there is a rebound at this point, the price may move towards the 100-period moving average, which is around $3940.
Ethereum – H4 interval. Source: xStation5
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