The bearish axe finally dropped on the cryptocurrency market as the collective industry dropped by $300 billion. Ethereum registered a massive crash of 12% as the largest Altcoin re-tested its psychological support at $4000.
Ether and the rest of the market were expected to recover immediately, but the scenario might be different going forward. Ethereum’s market cap fell below the $500 billion mark as trading volumes rose to $23 billion/day.
Ethereum 4-hour time frame
Ethereum lost its initial support at $4300 quickly. Over the past 24-hours, it failed to recover above the aforementioned range as bearish pressure piled on. At the moment, the trend is possibly reaching a bottom in the short term. There are a couple of signs which indicate potential recovery. At press time, Ethereum managed to stay above the high-time frame support range of $3950-$3900, which was the market top in early September.
One major concern is the rising selling volumes. With the SSL indicator also suggestive of bearish price dynamics, bears maintained a strong grip in the market.
Market Indicator
Market Indicators remained contradictory to each other. RSI remained near the oversold region, which suggests a bullish recovery should take place in the immediate trading session. However, MACD registered another bearish crossover, with clear momentum on the bearish side and On-Balance Volumes suggested selling pressure as indicated earlier by trading volumes.
Good time time to buy?
Ethereum’s long-term trend remains bullish in the charts. According to data, it is back in the buying opportunity, and holding a range between $4000-$4300 should allow the bulls to recover. The altcoin needs to maintain a position above $3900 in the near term. Moreover, recovering active addresses should assist in a bullish comeback.
However, it is possible Ethereum will remain under $4300 over the next few days.