The price of Ethereum is up over 3% to $4,321 USD as it trades in a third consecutive positive session in the daily period. Bulls are aiming to recoup the weekend losses caused by the crypt market flash collapse, which saw the ETH drop as much as 22 percent in a matter of hours. If the largest cryptocurrency remains above the critical $4,000 barrier, it may be feasible to recoup even last week’s losses.
Ethereum price is resting on strong support
Ethereum (ETH) is now trading near the 50-period Simple Moving Average (SMA) of $4,351. Closing over the 50 SMA will encourage the bulls, pushing the price of the smart contracts giant’s token above the $45,82 support welcomed by the rising parallel channel’s bottom border. Such a move would return ETH to the confines of the rising channel, allowing for a total recovery of last week’s losses, with Ethereum hitting $4,873 encompassed by the middle border of the ruling chart pattern.
Four-Hour ETH/USD Chart
This optimistic view is validated by the Relative Strength Index (RSI) indicator’s upward rise and position above the midline. Furthermore, ETH is supported not only by the psychological threshold of $4,000 but also by the 100 and 200 SMAs, which are around $3,888 and $3197, respectively. Furthermore, statistics from on-chain monitoring source IntoTheBlock verify the significant downward support that the Ethereum price enjoys. Its In/Out of the Money Around Price (IOMAP) model indicates that ETH has reasonably strong immediate support at $4,300. It is between $4,235 and $4,364 in price, where around 1.53 million addresses previously purchased approximately 4.43 million ETH.
ETH/USD 1 DAY PRICE CHART: SOURCE – COINMARKETCAP.COM
IOMAP Ethereum Chart
According to the same IOMAP chart, the route with the least resistance for Ethereum price is higher. As a result, investors should stay optimistic that as long as ETH continues over $4K, it will be highly positive for long-term holders. However, a breach of the $4,300 immediate resistance level might result in large sell orders, dragging Ethereum down towards the $4,107 support floor or below the $4,000 level, tagging the 100 SMA at $3,889.