Ethereum price takes a pit stop at $2,400, but declines seem far from over
Ethereum scaled some key levels from last week’s support of around $2,500. The largest altcoin hit levels above $2,800 following sluggish trading over the weekend. Moreover, bears forced their way, ending the seemingly eternal dilemma in the market.
A correction followed Bitcoin’s dive from $36,000 to $32,000. Bearish calls have soared in the market, with analysts believing that cryptocurrencies are in for a massive dip.
At the time of writing, Ethereum trades around $2,500 after bouncing off support at $2,400. The immediate upside is limited by the 100 Simple Moving Average (SMA). This means that recovery emanating from the support at $2,400 could face delays at this level.
Ethereum sends mixed signals
As mentioned, support at $2,400 has stopped losses from stretching further. Nonetheless, the Moving Average Convergence Divergence (MACD) indicator has a bearish signal. The MACD line cross under the mean line (0.00) cannot be overlooked. Besides, the trend momentum indicator has slipped into the negative region; thus, adding credence to the bearish outlook.
ETH/USD four-hour chart
The Relative Strength Index (RSI) dropped toward the negative region but seemed to have found anchorage at 35. As it points upward, bulls are bound to increase their entries, perhaps supported by investors coming in due to the lower prices.
Note that a daily close is required above the 100 SMA to validate the recovery. Realize that another delay should be expected at the 50 SMA, marginally under $2,700. Ethereum will only come out of the woods if the price takes down the hurdle at $3,000.
Ethereum intraday levels
Spot rate: $2,502
Trend: Bearish biased
Support: $2,400 and $2,100
Resistance: The 100 SMA, $2,700 and $3,000