It has been an awful week for Ethereum as the crypto asset has recorded significant price declines in the span of 72 hours.
At present, the bulls seem laser-focused in safeguarding and reclaiming lost ground at the $2,500 region. Although the bulls are working round the clock to achieve this, it appears to be a far-fetched target. Ethereum’s upward trend appears to be losing momentum below the 50 Simple Moving Average on the 12-hour chart. At present, Ethereum appears to be having a tough time recording a price recovery due to the current aggression of the bears in the crypto market.
At the time of writing, Ethereum is exchanging hands at the $2,141 region. Additionally, the IntoTheBlocks In/Out of the Money Around Price (IOMAP) technical indicator shows that Ethereum is facing substantial resistance between the $2,190 to $2,260 region. Here, more than 158,000 addresses purchased more than 8 million Ethereum tokens. The price range encompasses the 161 percent Fibo extension level of the 2018 bearish season, where Ethereum depreciated up to $2,248.
According to the 2018 bearish season, Ethereum recorded a positive price movement shortly after hitting the $2,248 tag. Although some analysts purport the same will happen with the ongoing market slump, Ethereum has to push above the second resistance level at $2,500 to continue its earlier bull run.
According to its 4-hour chart, Ethereum’s short-term technical analysis and levels appear to be weakening as time goes by. Its Moving Average Convergence Divergence (MACD) technical model also shows Ethereum is not out of the woods yet. At present, the MACD blue line is hovering way below the signal line, painting an adverse price movement. It is expected that whenever the divergence between the MACD blue line and signal line widens, the bearish narrative becomes more vicious.
In the meantime, Ether has managed to record a 2 percent price appreciation from the day’s opening price at $2,092. Trading around the $2,152 region, Ethereum is currently experiencing a surge in overhead and selling pressure due to the 100 Simple Moving Average, presently standing at $2,205. Due to the increased selling pressure, a price dip towards the $2,000 mark appears inevitable.
If this happens, the 200 Simple Moving Average is likely to offer Ethereum the most needed support. If prices dip further from this region, the plunge might extend towards the following support line around the $1,810 area.
It is worth noting that if Ethereum manages to hold support above the $2,000 mark, the crypto asset is likely to rebound and record a significant price surge. A price surge above the 50 Simple Moving Average is expected to open the door to a massive buying spree, as holders would expect a price surge towards the $2,500 mark.
On the other hand, Ethereum appears to be on the right path as it recently managed to record a market cap of over 281 billion in the market. This is a substantial improvement compared to Bitcoin. Ethereum seems to be stumping its authority in the crypto space.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
This post was last modified on April 21, 2021 9:12 pm
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