The sustained selling in Ethereum(ETH) price has knocked out several horizontal levels and DMAs. The altcoin recently breached the $2800 suggesting the sellers are prepared for another leg down. Moreover, the sellers could extend the correction rally to $2500 under the descending trendline influence.
Key points from ETH analysis:
The 20 and 100 DMAs are nearing a bearish crossover
A descending trendline carrying the ongoing correction phase
The intraday trading volume in Ether is $15.2 Billion, indicating a 2.2% hike
On April 5th, the Ethereum(ETH) price turned down from the $3600 resistance with an evening star candle. With Bitcoin losing $40000 support, altcoin faced the same fate and displayed a V-top reversal.
The sustained selling has breached three significant support levels such as $3200, $3000, and now recently the, $2800. However, today the ETH price is up by 1.24% and is trying to retest the breached resistance.
The ETH price will descend 11.6% towards the $2500 support if the selling momentum persists. Moreover, the technical chart shows a highly influential descending trendline which provides constant resistance to coin price.
This descending trendline assists traders in selling the rallies, which could bolster a freefall to $2500.
Alternatively, a bullish breakout from the resistance trendline would suggest the end of this minor correction and may trigger a new recovery rally. The potential rally may bring the ETH price $3000 resistance.
DMA: Aligned with the descending trendline, the 20 DMA offers dynamic resistance in leading this ongoing correction. Moreover, the coin chart hints at a potential crossover between the 20 and 100 DMA, which would attract more selling into the market.
MACD Indicator: The downsloping fast and slow line maintaining a sufficient distance between them accentuates sustained selling from the traders.
Resistance level: $2800 and $3000
Support levels: $2480 and $2200
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.