After a slow rise to the $ 3000 level, Ethereum’s price action turned red again. A breakout from last week’s key support at $ 1,750 failed to maintain momentum to overcome the congestion of sellers at $ 2,900 resistance. Such a retreat happened not only with the price of Ethereum, it is a general trend due to the depreciation of Bitcoin.
BTC was rejected at $ 40,000 and is currently seeking support at $ 36,000. The cross-border remittance token also lost the battle above $ 1 and went into the $ 0.9 range.
At the time of this writing, the major altcoin is trading at $ 2,745. The 50 simple moving averages (SMA) should reliably limit potential losses at $ 2,400 and $ 2,000.
If we talk about the short-term technical outlook, then it tends to get worse. For example, the Moving Average Convergence / Divergence (MACD) has stalled at 90 and may soon take a downward trajectory. Losses may increase if the MACD line (blue) reverses below the signal line. A fall in the trend momentum indicator will highlight a bearish outlook towards the midline (0.00).
The Relative Strength Index (RSI) in the four-hour chart has a strong bearish momentum after it stops moving into the overbought area. As the RSI moves back to the centerline, the bear’s grip tightens, making it difficult for the bulls to fight for a recovery. Consequently, the path of least resistance looks downward.
Support at $ 2,600 and 50 SMA could keep Ether from sinking to lower levels. In other words, buyers can focus on recovery if these levels continue as strong anchors. Trading above $ 2900 and $ 3000 can help bring Ethereum closer to $ 4000.
Ethereum daily levels
Spot Rate: $ 2760
Trend: bearish
Volatility: high
Support: 50 SMA and $ 2400
Resistance: $ 2900 and $ 3000
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
