Ethereum (CRYPTO: ETH) shares are trading higher Tuesday as the crypto tries to bounce back after losing much of its value the past couple of weeks. Ethereum has lost more than 20% of its value since Dec. 27, 2021. The crypto has been falling and nears the higher low trendline, an area where it may find support.
Ethereum was up 5.14% at $3,237.41 Tuesday afternoon at publication.
See Related: Ethereum Looks Set For An Imminent Bounce, But This Pattern Suggests More Downside Ahead
Ethereum Daily Chart Analysis
- Ethereum is seeing a solid green day for the first time since the big drop throughout the past week. This could be a sign that a reversal is coming. If higher lows can begin to form it may show the reversal is confirmed.
- The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto is seeing recent bearish sentiment. Each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) saw a slight bounce back today and sits at 36 on the indicator. This shows more buyers have moved into the crypto in the past few days although the crypto is still seeing mainly sellers overall.
What’s Next For Ethereum?
Ethereum looks to possibly be reversing and heading back higher toward resistance. If higher lows can form it may start moving back toward the $4,000 resistance level. Bulls are looking to see the higher lows form and for the price to push back above the moving averages. This may bring about bullish sentiment once again and then bulls are looking for the resistance level break. Bears are looking for the reversal to be unable to happen and the price to continue to drop. If the price falls below the higher low trendline, it could show the crypto is starting a long-term downward trend.
