By Nathan Ferguson
- ETH price is yet to escape the woods as bearish sentiment remains.
- A critical technical indicator shows sellers exceeding buyers.
- Ethereum might still encounter many hurdles if buyers join the space.
Ethereum price recorded rebounds after the latest crash as Vladimir Putin declared war on Ukraine. Though the bounce-off triggers optimism, several price indicators show ETH is still vulnerable to downswings.
ETH Tests Crucial Support Levels
Ethereum had its price declining beneath the climbing wedge on its 12hr chart on 18 February. The pattern projected a 28% downside move for the altcoin, eyeing levels of $2,055. 24 February session had the leading altcoin slumping to the swing lows of $2,301 before a 13% recovery after Joe Biden declared sanctions on Russia.
TRIN, which measures market sentiment, shows more sellers than buyers. Ethereum first defense line sits at 61.8% FIB retracement mark at $2,615, then the 78.6% FIB retracement around $2,398.
Ethereum price might drop lower to the 22 January lows of $2,300 before exploring the 24 January lows near $2,160. An additional surge in sell orders might push the alt towards the bearish target of around $2,055.
However, increased buying momentum will see ETH eyeing the 21 12hr SMA at $2,773. Surged activity by buyers will see ETH aiming at $2,851, the level where 50 12hr Simple Moving Average, 100 12hr Simple Moving Average, and 38.2% FIB retracement area intersect.
Intensified bullish sentiment might incentivize buyers to 23.6% IB retracement area near $3,015. After that, bulls will target the Momentum Reversal Indicator’s resistance at $3,139.
For now, Ethereum needs extended surges past the resistance of $2,750 to prevent downside movements. The leading altcoin remains vulnerable to lows despite the ongoing recovery. Inadequate volumes amid the upswings support downside for the altcoin.
Broad market sentiment remains crucial for Ethereum movements. While publishing this article, ETH traded at $2,627.21. Meanwhile, Bitcoin trades at $38,680.58. The dominant crypto requires a move past $40K for steady upside actions. Such a move can see ETH escaping the downside path. Nevertheless, a sudden shift in Bitcoin’s bias will see Ethereum on a massive decline, hitting projected bearish targets.