Ethereum
Main reason why Ethereum (ETH) price is falling today!
The cryptocurrency market has registered a significant correction of 3.47% in the last 24 hours. Moreover, major crypto tokens have shown a similar price trend by breaking their important levels.
In addition, the leader of altcoins, Ethereum Price saw the largest correction of around 8% among the top 10 cryptocurrencies by market cap. With questions like “Will ETH price retest its $2.8K low?” and “Why is Ethereum going down?”, the cryptocurrency market has entered a FUD-like situation.
Dive into this article, we discover the market sentiments, price analysis and possible short term price prediction of the Ethereum token.
ETH price fails to break above its important resistance level:
After trading in a neutral trend for about a week, the price of altcoin leader Ethereum failed to break out of its important resistance zone. This caused it to register a correction of 7.30% over the last day with a trading volume of $20.662 billion, representing a change of 7.83%.
TradingView: ETH/USDT
It is worth noting that the main reason for the fall in the price of the Ethereum cryptocurrency is considered to be a situation of selling the news, similar to the one the cryptocurrency market experienced during the launch of the Bitcoin ETF in January this year.
Moreover, this altcoin formed a triangle pattern in the 1D time frame and has continued to trade within this framework since February. With the current market situation, the ETH Price should retest its support trendline.
Ethereum Market Sentiments:
The Relative Strength Index (RSI) is showing a sharp decline on the 1D time frame, suggesting increasing selling pressure. Additionally, the moving average is showing a bearish convergence, suggesting that the price will continue to lose momentum.
The MACD indicator has been registering a steady decline in the green histogram, with its averages suggesting a strong possibility of a negative crossover. This highlights a bearish outlook for the altcoin this week.
Will ETH Price Increase?
If the market regains momentum, the Ethereum token will prepare to test its resistance level of $3,272.50. Moreover, if the bulls sustain the price at this level, it will pave the way for the ETH coin price to test its higher resistance level of $3,700 in the coming weeks.
Conversely, if the bears continue to dominate the cryptocurrency market, Ethereum price will plunge towards its triangle pattern support trendline. Moreover, if the bulls fail to sustain the price at this level, the altcoin leader will prepare to test its crucial support at $2,870.