Ethereum (ETH) Might Test $4100 Support Zone as Correction Move

Ethereum (ETH) Might Test $4100 Support Zone as Correction Move
  • ETH withdrawals have been falling since May. 
  • Selling pressure may rise as the year draws to a close.

On November 18 and 19, bulls sought to recoup last week’s losses by bursting off the $4,000 support wall. The $4,400 supply zone denied the ETH comeback. This barrier level may limit any attempts to raise the price of the smart contracts token to over $4,100.

According to Glassnode’s on-chain statistics, ETH withdrawals have been falling since May. During the first five months of the year, the volume of ETH leaving exchanges increased dramatically. However, since May, this measure has stayed below 55,750.

It seems that selling pressure may rise as the year draws to a close. Reduced exchange withdrawals indicate investors’ trust in Ethereum’s potential to maintain its upward trajectory. Thus, higher-level speculating may be significantly reduced.

Bulls Trying to Push Above $4400

After the $4,400 barrier was failed, the Ethereum price has been under growing pressure. ETH has to retest the $4,100 support zone to avoid further losses into the green demand band on the daily chart. The RSI at 43.16 and the MACD signal moving into the negative territory are not easy to ignore. These two negative signs indicate that Ethereum will continue to fall until the signals become bullish.

ETH/USDT: Source: TradingView

According to analysts, ETH may be locked between $4,000 and $4,400. A break below $4,000 might lead to losses towards $3,900 and $3,700. On the upside, bulls may push ETH over the $4,400 supply zone shown by the red band on the daily chart. Many experts predict that Ethereum’s price will soon reach an all-time high of $6,500.

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