This week the crypto market has been sluggish overall. However, Ethereum hit a new high yesterday, hitting $ 2,644, outperforming major cryptocurrencies.
However, the upward trend did not continue today. With Bitcoin’s price trend weakening today and falling below the $ 50,000 mark, the entire cryptocurrency market is currently in chaos and other virtual currencies are declining to varying degrees. The ETH was not spared either, falling by more than 10% today and trading at USD 2,141.
Price analysis of Ethereum (ETH)
Source: ETH/USDT Daily via TradingView
As measured by the daily candlestick chart, ETH reached a record high of USD 2,644.47 yesterday. However, the reverse hammer pattern was formed, indicating that the price of Ethereum sparked a large number of sell orders after it peaked based on the uncertainty of ETH holders about the current crypto market.
Currently, the bulls are actively fighting the bears, trying to keep the price of Ethereum above the 20-day exponential moving average of $ 2,200. However, it seems that the bulls are not strong enough as Ethereum is currently trading around $ 2,187.
The Moving Average Convergence Divergence (MACD) indicator shows that sellers have an advantage. Currently, the blue MACD line has crossed below the signal line, indicating a bearish momentum.
The Stochastic Relative Strength Index (RSI) confirms a solid bearish effect. In the short term, Ether could aim for a lower price level, provided the cryptocurrency is not strongly supported, for example by an inflow of institutional funds.
If the bulls fail and push the price of ether above $ 2,200, the ETH / USD trading pair will soon drop below the $ 2,000 mark. In terms of Ethereum trading volume, there isn’t much buying support at the $ 2,000 mark. ETH / USD is very likely to test the 60-day moving average of $ 1,945.
A break below the 60-day EMA of $ 1,945 will trigger an intensified sell-off for Ethereum, which can lead to a fall to the $ 1,300 support level.
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