- Ethereum shakes off weak hands from the market following the freefall to $2,650.
- The 100-day SMA plays a crucial role, ensuring that ETH does not extend the bearish leg to $2,400.
The cryptocurrency market is experiencing a downtrend run amid heightened volatility. Investors have been cautiously bullish, especially with the stock market bleeding in the wake of Evergrade’s, a Chinese property behemoth saga.
Ethereum continues with its bearish stretch from the previous week, where it was rejected at $3,679 (data from Coinbase). Most enthusiasts and crypto analysts pointed to $3,000 as the ultimate support. However, over the last 24 hours, Ether made its way to $2,650, levels not seen since early August.
Where Is Ethereum Price Headed?
The gigantic smart contract token is trading at $2,875 on Wednesday and toward the end of the Asian session. Overhead pressure shot up significantly after Ether lost the support at the red zone on the daily chart.
Nonetheless, the 100-day Simple Moving Average (SMA) came in handy, preventing bears from doing more damage. With this support in place, Ethereum has started looking toward recovery above $3,000.
It is worth mentioning that if recovery to $3,000 fails, bears may attempt another takeover, this time targeting the green zone near $2,400. The 200-day SMA will also be in line to provide Ethereum with cushioning.
ETH/USD Daily Chart
The second-largest cryptocurrency would likely dance between the red and the green zones in the coming sessions. Traders can watch out for action past the 50-day SMA to ascertain the validity of the uptrend to $3,600 and later to $4,000.
According to the Relative Strength Index (RSI), buyers are gradually regaining control. The uptrend’s strength will soar as the RSI lifts toward the midline and the overbought area.
On the downside, holding above the green zone is particularly crucial for Ethereum because immense sell orders could be triggered as panic selling grips investors. If it fails to hold, we can expect ETH to make a comeback at $2,000.
Ethereum Intraday Levels
Spot rate: $2,868
Trend: Minor bullish bias
Support: The 100-day SMA and $2,400
Resistance: $$3,200 and the 50-day SMA
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.