The cryptocurrency market exhibits significant fluctuations midweek. Ethereum, following the main trend, failed to surpass the $4K level.
Current Market Situation
At the start of the week, Ethereum's price rose above $4K but then retraced to prior levels. The cryptocurrency trades around $3,858, having lost 3.66% over the past 24 hours. The daily trading volume reached $37.41 billion, with market observing $55.82 million worth of liquidations.
Technical Indicator Analysis
Key technical indicators show a downward correction. The MACD line has fallen below the signal line, indicating potential selling pressure. The Chaikin Money Flow indicator shows minimal positive money flow at 0.01, hinting at weak buying activity.
Ethereum Price Movement Prospects
Analysts suggest Ethereum might break the $4.1K resistance, paving the way for a rise to $6K. However, if the downtrend continues, retracements to support levels $3,728 and $3.5K are possible. The Relative Strength Index (RSI) stands at 42.76, suggesting a neutral market sentiment.
Ethereum continues to fluctuate around key resistance levels. Its movement near $4K could either lead to an upward surge or further correction.
