Ethereum is back in a downward slope following notable losses in the past week, although it appears strong today. An expansion from the current trading level should determine the next major move.
Following last month’s trading, Ethereum took a temporal break after dipping to its lowest level for the first time in a year. This brought little positive action in the market while recovering, but the crypto later lost buzz and fell below the $2 level in the late month.
Mirroring Bitcoin, it rolled over and closed last week slightly bearish. This brought a negative sentiment back in the market, and it is now priced at around $1,871. It is now showing signs of strength after trading calmly yesterday.
The latest surge suggests an increase in volume, but from the look of things, the bears will likely resume pressure. They seem to be gathering momentum before releasing pressure. If that happens, we can expect a breakdown to a new monthly low.
A reestablished support above the recent monthly low has triggered a bounce. That could activate another recovery capable of bringing the bulls back in action. Even though that comes into play, Ethereum must reclaim the $4k level before we can consider a major shift in the trend.
Its market structure remains bearish on the mid-term scale, despite the current increase. More bleeding is likely if Ethereum’s supply increases.
Source: Tradingview
In the next drawdown, Ethereum may reclaim the recent monthly low of $1,755. A break from there could plunge the price to $1,640 and $1,550.
Following the latest increase, it may face an immediate resistance at $1,937 before tapping $2,100 rebound. If the price climbs above these levels, higher resistance levels to watch for a test are $2,300 and $2,550.
Key Resistance Levels: $1,937, $2,100, $2,320
Key Support Levels: $1,755, $1,640, $1,550
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Bitget officially launched pre-IPO access to OpenAI via its IPO Prime platform which deepens their…
Tether's presence in decentralized tech space is growing due to the launch of its developer…
While challenges remain, the decentralized finance sector is moving forward, and Huma Finance's exploit serves…
Chainlink is continuing its mission to be the most widely integrated infrastructure in crypto, adding…
A vulnerability in one of the core DeFi protocols on Sui Network exposes the ecosystem…
Polygon has made a big move in cementing its mission as one of the leading…