Ethereum
Ethereum (ETH) loses critical support level
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Ethereum fell below the $3,700 threshold, failing to break through the consolidation channel. If the price fails to move higher, we could see another period of consolidation where the moving average could catch up with the massive volatility seen a few weeks ago and potentially provide ground for the rally to continue.
As this level constitutes a crucial area of support for ETH, the recent decline below $3,700 particularly raises some concerns and questions. If it falls below, it may indicate that the bulls need to reorganize as the bears become more powerful.
Strong price fluctuations are characteristic of a volatile asset like Ethereum. Based on the current trend, it appears that ETH is struggling to maintain its upward momentum.
Ethereum went through a consolidation phase, fluctuating between support and resistance levels, as the chart illustrates after a significant rally. This type of activity usually occurs before a notable change in price, either up or down.
A deeper decline toward the 200-day moving average, a more reliable measure of long-term trend direction, could occur if it fails to hold. In the short term, this could lead to increased downside risk. Another important consideration is volume.
Above-average trading volumes were seen alongside the recent decline, suggesting sellers are more active. This could indicate that more traders are reducing their positions, which would put more pressure on prices to fall. The RSI, on the other hand, hovers around neutral. This shows that Ethereum has room to recover if market sentiment reverses, and that it is neither overbought nor oversold.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.