Ethereum Momentum Falters After 9-EMA Breakdown
Ethereum (ETH) continues to struggle for directional clarity, with its recent daily candles reflecting an ongoing battle between bullish resilience and mounting bearish pressure.
After briefly attempting to recover above $4,000, ETH has slipped toward a key support region, signaling that traders are treading cautiously as momentum indicators tilt toward consolidation rather than a breakout.
Short-Term Trend: Bearish Bias Strengthens
ETH’s price action shows a gradual erosion of bullish momentum as the 9-day and 20-day exponential moving averages (EMAs) have both flattened and are now acting as overhead resistance.
Daily chart for ETH/USD (Source: GeckoTerminal)
The 9 EMA slipping below the 20 EMA underscores weakening short-term buying pressure—a development that typically precedes extended consolidation or a downside continuation. This alignment suggests that buyers are losing control of near-term momentum, leaving Ethereum vulnerable to deeper pullbacks if demand doesn’t strengthen soon.
Ethereum Momentum and Market Strength Indicators
The MACD remains in negative territory, with the histogram still showing consistent bearish divergence. This signals that bearish momentum continues to dominate, though the rate of decline appears to be slowing—hinting at a possible stabilization phase if buyers can defend support levels in the coming sessions.
Meanwhile, the RSI hovering near the mid-40s indicates a neutral-to-weak trend. It’s not yet oversold, but it reflects limited enthusiasm among bulls and leaves room for further correction if sellers gain confidence.
Order Book and Market Liquidity Dynamics
Ethereum’s order book reveals an interesting tug-of-war between demand and supply around the $3,900 zone. A notable bid wall at $3,915 with over 107 ETH (~$418,000) suggests that buyers are actively defending this level.
However, consecutive support layers at $3,911 and $3,910—holding around $646,000 combined—appear fragile; if these are absorbed, ETH could lose about 0.4–0.5% rapidly, opening a path toward the $3,874 support.
On the upside, a cluster of ask walls between $3,928 and $3,939 indicates minor but persistent selling pressure. Clearing these could trigger a modest short-term relief rally toward $3,986–$4,004, but sustained upside momentum looks limited unless the Ethereum price can break decisively above $4,050.
Key Levels to Watch
The broader technical picture highlights $3,874 and $3,746 as the most important supports to maintain ETH’s structural integrity. A breakdown below these zones would likely invite stronger selling pressure and a retest of the $3,628 level.
Conversely, Ethereum reclaiming the $3,986–$4,004 resistance band could flip short-term sentiment to bullish, particularly if accompanied by a positive MACD crossover or an RSI rebound above 55. Beyond that, $4,450 remains a major resistance threshold that would need a strong shift in market participation to overcome.
Potential Trading Strategies
For short-term traders, the current setup offers both risk and opportunity.
Long positions could be considered near the $3,874–$3,910 zone, provided the bid walls hold and the RSI shows signs of recovery—though tight stop-losses are essential to mitigate downside risk.
Short positions may be favored on failed attempts to reclaim the $4,000 zone, targeting $3,874 initially and possibly $3,746 if bearish momentum accelerates. Until a clearer directional break emerges, the market appears locked in a range where patience and disciplined position sizing remain key.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
