The cryptocurrency managed to break the support level at our 23.6% Fibonacci retracement of $4,131.71. Most cryptocurrencies are suffering big losses and ETH is not the exception. The short and long-term moving averages spread is closing up as the price drops, a cross would signify a trend reversal, but there is still a good gap between the lines.
The Bollinger bands are opening up aggressively, the price is trading below the lower band which could play to ETH advantage as investors will consider it (current price) relatively low. There could be a bounce in the short term and consequently a resistance breakout.
The relative strength index is at 39%, this will allow the pair to start an aggressive recovery rally as there is a lot of room until reaching that 70% overbought status. Our parabolic SAR indicator suggests that the price will continue to fall in the short term.
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