Ethereum price rally slows, but $4,000 is still on the table for ETH

Summary:

The Ethereum price has run into significant overhead resistance at $3,650 over the last week. However, ETH sees good scale down support

The Ethereum price has run into significant overhead resistance at $3,650 over the last week. However, ETH sees good scale down support, which should underpin the push to $4k. Despite Bitcoin (BTC) pushing to a five-month high yesterday, Ethereum (ETH) slid 4.5% in Sunday trading and continues to under-perform the market leader.

ETH price started October well, surging 22% in the first eight days of the month. However, after reaching a three-week high of $3,670, the price slumped 8% to this morning’s $3,370 low. Nonetheless, Ethereum has climbed 30% from the $2,650 low set in late September. Furthermore, a recent report from JP Morgan highlighted that institutional investors show a strong preference for Ethereum over Bitcoin. Despite that, ETH has lost ground to BTC recently as the market leader benefits from the increasing likelihood of a Bitcoin-based ETF receiving regulatory approval in the US. However, the Ethereum price shows resilience and holds above the critical $3,330, which is encouraging.

ETH Price Forecast

The daily chart shows ETH is sitting between trend support and trend resistance. A descending trend line from the May all-time high offers significant resistance at $3,850. If ETH clears $3,850, an extension towards the ATH is possible. Ahead of the trend, $3,650 offers interim resistance. Notably, the bounce from the Evergrande default low on the 7th of September failed at $3,650.

On the downside, the 50-day moving average at $3,350 is the first support. Notably, this aligns with the former resistance in August at $3,330 and is the first critical level for the bulls to watch. Further price support is visible at a rising trend line at $3,000. Following that, the 100 DMA at $2,940 and the 200 at $2,736 provide additional coverage. As long as ETH holds the trend and the 100 DMA, the outlook is constructive. However, the bullish view becomes invalid on a close below the 100 DMA at $2,940.