The Ethereum (ETH) price has already lost 50% of its gains obtained during the recent recovery rally. The coin chart showed five consecutive red days, which plunged the coin price to $2600. This minor support stands as the last line of defense preventing sellers from pulling the coin to January’s low support at $2200, will bear domination continue or bulls step in at the last minute.
Key technical points:
- The ETH chart shows a bearish crossover of the 100-and-200 SMA
- The intraday trading volume in ETH/USD is $15.2 Billion, indicating a 39.5% hike.
Source- Tradingview
Amid the ongoing sell-off in the crypto market, the ETH price reverted from the $3200 psychological level which registered an 18% loss in the last five days. The coin chart displayed a bearish double bottom pattern bolstered the supply pressure as sellers pulled the below $2840 neckline.
Following this breakdown, the altcoin plunged to the immediate support of $2600. By the press time, the ETH price is trading $2728 mark, indicating a 4% gain from the mentioned support.
However, the 100-and-200-day SMA negative crossover would encourage the traders to follow a bearish path. Moreover, the chart also shows a bearish sequence among the crucial SMAs(20, 50, 100, and 200)
After a bearish crossover, the MACD indicator’s lines slip below the neutral zone, indicating an increasing selling momentum.
ETH Risks Further 16% Downside If Buyers Lose This Key Support
Source-Tradingview
The ETH/USDT pair rebounds from the $2600 support accompanied by a significant surge in volume activity. If the buying pressure sustains, the altcoin would retest the $2830 mark, followed by the $3250 resistance.
On a contrary note, if sellers plunge the coin below the $2600 mark, the ETH price would retest the January low support($2200) along with the threat for downtrend resumption.
Resistance levels- $2830, $3250
Support levels are- $2600 and $2200
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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