Ethereum

Impact

when

Drops

<a href="https://www.newsbtc.com/news/bitcoin/bitcoin-ethereum-exchanges/" target="_blank" rel="noopener ">Ethereum</a> (ETH), the second-largest cryptocurrency by market capitalization, has recently seen its price fall below the 4-hour Simple Moving Average (SMA). This technical development is noteworthy for traders and investors, as the 4-hour SMA is often used to gauge short-term market momentum. 
When a cryptocurrency’s price drops below this moving average, it can signal a potential shift in market sentiment from bullish to<a href="https://www.newsbtc.com/news/is-ethereum-in-danger-analyst-warns-of-bearish-future-if-eth-drops-below-this-level/" target="_blank" rel="noopener "> bearish</a>. This could imply increased selling pressure and a possible downward trend continuation. The implications of this price movement extend beyond technical analysis, as broader market conditions, investor behavior, and fundamental factors also play a crucial role in shaping Ethereum’s future trajectory. 
In this article, we will be exploring ETH’s potential price action with the help of technical indicators. 
<h2 id="strong-ethereum-price-condition-on-the-4-hour-chart-strong">Ethereum Price Condition On The 4-Hour Chart</h2> 
Firstly, it can be observed that ETH’s price in the 4-hour timeframe has experienced a drop below the 100-day SMA after moving in a consolidation manner for a while.&nbsp; It should be noted that most times when an asset drops below SMA, it could indicate <a href="https://www.newsbtc.com/analysis/eth/ethereum-signals-bearish-3840/" target="_blank" rel="noopener ">a short or long-term move in that direction.</a> 
<img loading="lazy" decoding="async" class="size-medium wp-image-612107 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM-1.jpeg?w=460&amp;resize=460%2C267" alt="Ethereum" width="460" height="267" srcset="https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM-1.jpeg?w=1439 1439w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM-1.jpeg?w=460&amp;resize=460%2C267 460w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM-1.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM-1.jpeg?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM-1.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM-1.jpeg?w=1140 1140w" sizes="(max-width: 460px) 100vw, 460px" data-recalc-dims="1"> 
Additionally, the Relative Strength Index (RSI) indicator also confirms that Ethereum might move in the downward direction for a while as the RSI line has crossed below 50% and could trend there for a while. 
From the daily chart, it can be noticed that Ethereum is attempting to make a move toward the 100-day SMA after dropping a bearish candlestick on the previous day. At this point, it can be suggested ETH dropped to test the 100-day SMA before making an upward move again. 
<img loading="lazy" decoding="async" class="size-medium wp-image-612106 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM.jpeg?w=460&amp;resize=460%2C267" alt="Ethereum" width="460" height="267" srcset="https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM.jpeg?w=1439 1439w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM.jpeg?w=460&amp;resize=460%2C267 460w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM.jpeg?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-08-at-10.58.39-AM.jpeg?w=1140 1140w" sizes="(max-width: 460px) 100vw, 460px" data-recalc-dims="1"> 
Finally, the RSI line from the RSI indication is currently dropping out of the overbought zone toward 50% indicating that there is still room for ETH to move downward. 
<h2 id="strong-eth-price-projection-strong">ETH Price Projection</h2> 
As of right now, Ethereum is attempting to move downward toward the daily SMA, If it drops below, it will continue to move downward toward the $2,865 support level. Furthermore, it can drop even more to test the $2,147 support level if it drops below the aforementioned level. 
However, if ETH’s price touches the SMA and bounces back, it will move upward toward the $4,099 resistance level. Also, should it break below this resistance level, it will continue to move up to test the $4,863 level. <a href="https://www.newsbtc.com/analysis/eth/ethereum-price-pulls-back-3880/" target="_blank" rel="noopener ">ETH</a> may move to create a new high if it rises above the $4,863 level. 
As of the time of writing, ETH’s price was trading at around $3,694 and was up by 0.41% with a market capitalization of over $443 billion and a 24-hour trading volume of over $18 billion. Its market capitalization is down by 2.97%, while its trading volume is up by 39.28% in the past day. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/9WGurkPT/" alt="Ethereum" width="2283" height="1265">

Ethereum Drops Below 4-Hour SMA: Analyzing The Impact

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