By Nathan Ferguson
Ethereum traded at $3,030 before the dominant alt saw a sharp fall of 11% over the previous week. Top crypto assets suffer downtrends after breaching their closest support floors. Bitcoin plummeted beneath the $40K mark, following a 12% loss within the last week. Meanwhile, the global market capitalization hovered at $1.96 trillion, losing 0.2% over the past day.
ETH saw a selling spree over the past week, but the alt tried to recover from selling activity over the past week. However, the market is yet to attract buying momentum. Recently, ETH developers launched the Mainnet Shadow Fork.
ETH Price Analysis – 4Hr Chart
Ethereum traded near $3,028. 86 and the altcoin has traded around this level value region over the past two days. The crypto’s nearest resistance stands at $3,085.60, following turndowns in the area several times in the past couple of days. Extended rejections around this resistance can push Ether lower towards the support barrier at $2,839.12.
Moving towards the barrier would translate to a 6.44% drop. Bulls’ resurgence can see ETH targeting the resistance near $3,391.95, then $3.609.61. Nevertheless, trading volume stayed red, signalling that sellers exceeded buyers at this publication.
Technical Analysis
Ethereum had its price movements inside an oversold region over the past 72 hours. For now, the leading alt battled to gain substantial buying momentum. The Relative Strength index remained beneath the 50 levels as ETH exhibited undervalue and oversold conditions at this publication. Moreover, RSI spent most of its time under the half-line in the past week.
The 20 Simple Moving Average had Ethereum beneath the 20SMA, matching the RSI’s readings. Furthermore, the indicator highlighted sellers’ control.
Ethereum flashed bearish price moves since the past week’s selling spree. For now, the alt continued to present a downward outlook, and bulls took over for a brief moment over the past few hours.
The MACD remains negative as it hovered beneath the zero-mark. That affirms bears’ presence. It may be early to say whether upcoming sessions would have Ether gaining upside momentum. However, extending current price actions will see MACD staying beneath the half-line.