Ethereum Price Analysis: ETH Reclaims $4K Post Crash, Reaching 3.5-Year High Against BTC
The bad news is that following the crypto market collapse, ETH crashed to $3,470 on Bitstamp on Saturday early morning UTC. However, the good news is that ETH showed strength and managed to recover most of the drop, reclaiming the critical support level at $4K.
Key Support levels: $4,000
Key Resistance levels: $4,284, $4,500, $4,868 (ATH)
Despite the market crash on Saturday morning, which saw significant liquidations of over-exposed leveraged traders, Ethereum managed to recover almost entirely, as of writing these lines.
This is an important signal to the market that ETH is firmly holding against Bitcoin, which appears much weaker following this weekend crash. While ETH managed to recover fast and reclaim the $4K milestone, the same cannot be said about Bitcoin.
For this reason, on the ETH/BTC chart, ETH just made a higher high at 0.085 BTC, which is the highest level since May 2018. The all-time high versus Bitcoin lies around 0.15 BTC, and Ethereum appears well on its way towards that target after breaking above the key resistance at 0.080 BTC, along with a horizontal triangle pattern (as shown on the following chart)
Against the USD, ETH has to remain above the key support at $4,000 to maintain the bullish price action and then likely to face resistance levels at $4,284, $4,500, and $4,868 (ATH).
ETH/BTC Chart by TradingView
Trading Volume: During the crash, the volume peaked. However, the recovery candle saw a lot fewer amounts of volume. Best to be cautious because of this, particularly once the price reaches the first resistance at $4,284. In other words, the volume is not in favor of the bulls right now.
RSI: The daily RSI made a higher low, despite the crash. This is a sign of strength and gives hope for a speedy recovery.
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