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After crashing more than 28% in a matter of days, the Ethereum has been retracing higher ever since and is right now trading at key support on the 4-hour timeframe.
This key support has held the ETH price on numerous occasions making it very important for the bulls to continue to defend. In this Ethereum analysis, we will be talking about the importance of this $3,890 key level and the bearish outlook for Ethereum if this level gets broken!
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The Ethereum $3,890 Key support!
This $3,890 price level is the most important key support for the Ethereum price, and it as been holding strong for weeks now. If this level breaks, there is a very high probability that we might see the Altcoin have a steep sell-off in the coming days.
This makes it very important for the Bitcoin bulls to defend this price level at all costs. Because if this level gives way, our bullish bias for Ethereum for the short terms also goes with it!
Ethereum Bearish Prediction!
Until Ethereum breaks below the $3,890 key support we believe the price of the Altcoin might just keep on heading higher. For the bearish prediction to become valid, Ethereum needs to break through and close below this $3,890 key level on the 4-hour timeframe. Only then can we expect to see more sell-off.
This sell-off could push the ETH price to as low as the $2,718 support region soon! This $2,718 level is the next majour support for Ethereum if it breaks through this current level.
Final Verdict!
Ethereum is currently trading at a critical level on the 4-hour timeframe. The level is very important to the Ethereum bulls because as long as this $3,890 support holds, there is a very high probability that the ETH price will only keep on trending higher.
However, if this key support gives way, we might see the Ethereum bears come back in to push the Altcoin price even lower. And our bearish target for an ETH sell-off like this is the next key support at $2,718.
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