Ethereum (ETH), the second-largest cryptocurrency by market capitalization, had hit a new high just recently when it breached the $2,600 level, outperforming major digital currencies in a sluggish week for the crypto market.
The momentum, however, was halted when the altcoin experienced a drop of more than 10% to trade in just above the $2,100 mark.
Bitcoin (BTC), which fell below $50,000, led to the chaos currently being experienced by the cryptocurrency market. Its effects were reflected by the varying decline in the prices of virtual currencies, and Ethereum, despite its bullish run, was not spared.
A look at ETH price analysis
After registering its recent all-time high, a large number of selling orders for ETH was triggered. This is also based on the uncertainty of Ethereum holders about the current crypto market.
An active fight is being put up by the bulls to hold Ethereum’s price above the 20-day Exponential Moving Average set at $2,200. As it turned out, the bulls were not strong enough, as the digital currency ended up trading at below $2,190 level.
The Moving Average Convergence Divergence (MACD) also showed sellers having the advantage, indicating a bearish momentum that does not favor the price of the second-largest cryptocurrency.
More bad news
The Stochastic Relative Strength Index in the price monitoring confirmed a solid bearish effect for Ethereum’s price.
Unless strong support such as inflow of institutional funds is gained by the cryptocurrency, it might dive to lower price levels.
If the push for the ETH price to get above $2,200 does not succeed, the ETH/USD trading pair will also fall below the $2K mark. Trading volume-wise, there is little buying support at the said mark, and the trading pair will most likely explore the 60-day moving average of more than $1,900.
A break below this average will intensify a sell-off of Ethereum and will lead to a drop to the support level of $1,300.
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