By Franklin Smith
Briefly–
- Ethereum, similar to the broad crypto space, suffered a flash crash amid midnight sessions on Saturday.
- The leading altcoin dropped 17% of its value at some point.
- Through the remaining Saturday sessions, buying momentum erased almost all the losses incurred overnight.
Though the downbeat mode in the crypto market over the past day, Ethereum has recorded spectacular price actions during late sessions on Saturday. As most assets in the alt market remain up to 20% down, ETH’s daily closes at 4% down show the altcoin’s strength.
ETH Reclaims Flash Crash Losses, Outperforming the Crypto Space
Ethereum price saw one among the deepest and fastest crashes since the May massive fall. That was during Ney York sessions early hours on Saturday. Bears targeted to push ETH lower to $3,503 before the alt could see a bullish reversal.
For now, the 3rd-highest volume node in 2021 Volume Profile is near $3,410, and Senkou Span B around $3,700 serves as the governing support areas maintaining ETH price up. Though near-term readings suggest massive bullishness, downward risks and indecision remain.
Regardless of the promising recovery, ETH remains within the daily Cloud. It is a value area with whipsaws, volatility, and indecision. It is inside the Cloud where trading accounts die. Therefore, ETH requires a daily close above the price level at $4,650 to shift into a full-blown bullish market.
For now, Ethereum exhibits bearish sentiment as the Chikou Span stays beneath the candlesticks in an open space. Moreover, the Relative Strength Index depicted a bear flag breakout, supporting the bearish narrative. Nevertheless, the last oversold market at 40 in RSI might showcase some support.
Meanwhile, the threshold bears need to convert the alt into a bearish space is a somewhat manageable range than shifting the market into bullishness. For instance, while ETH requires a 15% upswing past $4,000 for a bullish market, short-sellers need a 7% downswing beneath $4,000 for Ethereum to step into a bearish market.
A daily close beneath $3,700 will see Ethereum positioned under the Cloud and within a bear market region. On the other side, Bitcoin battles with bearishness at $49,098 at this publication. You can share your comments about the above market conditions in the reply section below.
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