- Ethereum price approaches the key $4,207 support as market risks increase, price pullback is expected.
- Ethereum RSI exceeding 75 indicates the overbought situation, which introduces the possibility of correction in the short-term.
- The support level of Ethereum $4,207 is critical in sustaining bullish momentum, which is under threat due to increasing market risks.
Ethereum price has risen powerfully over the last days, surpassing various resistance zones. Nonetheless, investors are becoming concerned that it may not break and stay above the critical support of around 4,207, particularly amid escalating market risks. With Ethereum testing this support, traders equally pay close attention to whether the price will stabilize.
Ethereum Price Set to Test $4,207 Support Amid Rising Market Risk
The price of Ethereum is currently down as it also targets the significant support of $4,207 after briefly reaching a new high of $4,433 previously. Analyst Micheal van de Poppe notes that this area has served as a support and resistance point in the past and is, therefore, crucial to the movement of prices. In case Ethereum cannot sustain above $4,207, a more intense retracement might take place, and it may plunge towards the next support at $3,941.
Source: X
Ethereum is facing pressure in its stability due to rising geopolitical uncertainties and market risks. Failure to maintain the $4,207 level might initiate a fall in selling, probing lower support levels such as $3,941 and $3,670. Nevertheless, this support is essential as it helps Ethereum to sustain the bullish run further.
Ethereum price is overbought, and RSI superseded 75, which may result in a short-term correction. Failure to overcome the $4,433 resistance may lead to selling pressure in Ethereum price to the $4,207 support level. According to analyst Michaël van de Poppe, a decline below $4,207 may mean another round of weakness, as the next support is at $3,941.
Source: Micheal van de Poppe/X
The trend strength will depend heavily on volume patterns. An increase in volume with price gains would be a bullish confirmation of Ethereum price, and a decrease in volume would signal a failure of momentum. In the next few days, whether the Ethereum price can sit above $4,2007 will be important to determine the possibility that a deeper downtrend to the price of $3,941 is imminent or not.
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