15.09.2021
- Ethereum rebounds from $3,000 to above $3,400 but faces intense resistance between $3,500 and $3,600.
- The IOMAP model reinforces the resistance between $3,500 and $3,600 from an on-chain perspective.
Ethereum has, in the last one week, focused on securing higher support, especially one that is strong enough to prevent losses from stretching below $3,000. Prior, the pioneer smart contracts cryptocurrency had made tremendous progress from July lows of $1,700 to touching $4,000.
As Bitcoin tumbled from $54,000 in the first week of September, Ethereum saw its boat start to sink. Various tentative support areas at $3,600 and $3,400 did little to halt the downswing, which resulted in declines near $3,300.
Ethereum Bulls Not Ready To Give Up Mission To $4,000
The 50-day Simple Moving Average (SMA) put up a strong barrier, allowing buyers to feel the support. This increased investor confidence, and Ether recoiled above $3,400. However, another hurdle has become apparent at $3,500 and $3,600, delaying the expected recovery to $4,000.
Ethereum must close the day above this barrier to validate action to $4,000. Moreover, more buyers will come into the market as Ether makes haste toward $4,000.
Meanwhile, the Relative Strength Index (RSI) shows that ETH may settle for sideways trading as it levels at the midline. Nonetheless, nothing in the volatile cryptocurrency market is cast in stone. Hence it is essential to watch out for the direction of the RSI moving forward.
IntoTheBlockās IOMAP model brings to light a massive resistance, running from $3,512 to $3,614. This region is currently preventing bulls from achieving their goal to trade around $4,000. Nearly 316,000 addresses bought 8.21 million ETH in this range and will try to break even as Ethereum rises, a move likely to dampen the buying pressure. However, slicing through the same barrier would bolster Ethereum significantly upward as buyers take on $4,000.On the downside, Ethereum sits on top of relatively weak support areas, but the model brings our attention to the area running from $3,304 to $3,405. Here, 1.28 million addresses scooped up 4.5 million ETH. If they hold steady, Ethereum may have the chance to close the gap to $4,000, but losses will soar if broken and perhaps explore areas under $3,000.
Ethereum Intraday Levels
Spot rate: $3,400
Trend: Sideways
Volatility: Low
Resistance: $3,500 to $3,600
Support: $3,300 to $3,400