The crypto-bloodbath has continued, and Ethereum dropped more than 8% over the past 24 hours. As the price of Ethereum is very close to $1000, the bears have taken control. Bitcoin has suffered a severe selloff, with the cryptocurrency losing over 33% within the past week.
Other market mover have also seen their charts drop sharply due to this. Ethereum has lost support around $1300, and is now aiming for $1000. The market has seen buyers exit the currency as it remains extremely scarce.
Global cryptocurrency market capitalization today stands at $950Billion, with a decrease of 3.7% within the last 24 hour. The trading volume for the cryptocurrency has also increased significantly in the last day.
The price of Ethereum fluctuated between $1600 to $1200 over the last few trading days. If the current market selloff continues, ETH may not see a price correction in the next trading session.
Ethereum Price Analysis: 1 Day Chart
ETH was traded at $1122 in the 1 day chart. This level was last seen at the beginning of January 2021. This was the point at which the coin experienced a surge and traded over $4000 in the past.
Ethereum’s price could fall below $1000 if there is a pull from the sellers. The coin’s immediate price support level was $1014.
It was the red color that indicated bearish control. It was resistant at $1271 before it reached $1600. ETH can be helped by buyers entering the market to help it reach $1200 once again.
Technical Analysis
Selling strength rose excessively following the plunge in the price of the coin. Relative Strength Index reached its lowest point for the year, which indicated that the market continues to see heavy selling.
RSI was parked below the 20-mark, signifying that the market had been taken over by sellers. A correction is usually seen after major price drops.
Technical charts, however, point to a bearish price action. It is therefore difficult to determine when and how quickly ETH will reach its bottom.
ETH’s price was also below its 20-SMA. This meant the market favors the sellers, as they are driving price momentum.
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Moving Average Convergence Divergence showed a similar reading to other indicators. MACD is a measure of price momentum and changes in the same. This indicator was subject to a bearish crossover, and it flashed red histograms.
Red histograms showed an increase in size, which was a sell signal for Ethereum. Chaikin Money Flow depicts bearishness. This meant capital inflows were lower than outflows. The market was experiencing heavy bearish pricing action.
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