Ethereum’s (ETH) price trades lower on Tuesday after testing the $3,200 mark over the past two weeks. Investors remain reclusive to place fresh aggressive bids around the current levels.
- Ethereum pauses the gains on Tuesday after extending gains for consecutive five sessions.
- A decisive break above $3,200 could bring more buying opportunities in the pair.
- The price sits comfortably above $50 DMA.
Ether, the native coin of Ethereum is the second-largest cryptocurrency with the current market cap of $364,725,828,783.
Ethereum might retreat toward $2,800
On the daily chart, Ethereum’s (ETH) price has gained bullish momentum and manages to close above $3,200. Currently, ETH is hovering near the same level without a strong conviction to maintain the upside momentum. The investors flipped near the support-turned-resistance zone. The volumes have been supportive towards the upside momentum in the price.
However, the formation of the ‘Symmetrical triangle’ formation indicates indecision among investors. ETH would retreat toward the $2,800 horizontal support line if the triangle breakouts on the lower side.
The current bias for Ethereum is bearish in the short term. ETH is losing momentum as the volume is also declining, which is supporting the current down look for the pair.
The Daily Relative Strength Index (RSI) trades at 54. But the momentum indicator retreated from 57, which shows investors receding buying interest in the pair.
Furthermore, ETH is already struggling below the 50 DMA at $3,225.31 indicating challenges for the buyers. A decisive break below the $2,800 level could intensify the selling pressure toward the $2,400 horizontal support line.
Alternatively, if the breakout happens toward the upper end then the first target could be found at the $3,600 horizontal resistance level. As ETH breached the mentioned level the sentiment would turn in the favor of bulls and could jump toward the psychological level of $4,012.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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