Ethereum (ETH) price has failed to hold its weekly high of $2,400. Ether was seen testing $2,000 as buyers failed to defend the bearish-followed support points. One key support is strong with the 100 Simple Moving Average (SMA) as shown on the four-hour chart.
The largest altcoin is changing hands at $2,120 amid a gradual renewed recovery. But the technical outlook shows that this recovery could face many hurdles along the way.
Ethereum (ETH) faces a bottleneck before price recovery
The MACD indicator continues to produce bearish signals as seen on the Ether chart. The tool that follows this trend also calculates the momentum of the asset.
Exponential moving averages crossovers send bearish or bullish signals to assist traders in their decision to buy or sell Ether. Currently, Ethereum is mainly dominated by sellers. Moreover, the bearish outlook is reinforced by the MACD line moving into negative territory.
ETH/USD 4-hour chart
The Money In/Out Around Price (IOMAP) model highlights the presence of sellers in the market, especially in the $2,182 to $2,243 range. Here, around 509,000 addresses previously bought 9 million ETH. Trading above this zone is vital to sustain the uptrend to $2,400. However, it may be difficult for the bulls to break the $2,400 resistance.
Ethereum IOMAP chart by IntoTheBlock
On the downside, Ether is facing relatively weaker support areas, which could mean that the downtrend is not over yet. However, the IOMAP model reveals the receiver congestion zone between $1,864 and $1,926. Here, roughly 363,000 addresses previously collected around 1.84 million ETH.
Ethereum price intraday levels
Spot rate: $2,108
Support: $2,000 and $1,800
Resistance: $2,200 and $2,400