ETH Price Analysis: After Ether’s Death Cross, ETH/USD Finds Support Above $2,300

• ETH recorded a short-lived rally to $2,724
• ETH/USD rebounded from daily lows to $2,542 gaining almost 4% in 24 hours
• After Ether’s death cross completion, the market seems oversold

The crypto market declines have shown some correlation to the stock markets as it’s yet to decouple. During the mid-week, concerns about tighter policies from Fed had dampened the recovery, indicating a determination to push its tightening plans forward. The overall crypto market saw profit-taking as ETH recorded a short-lived rally to $2,724. As Ether took a hit to $2,159 low, a death-cross has completed on the moving average (MA 50) crossing the moving average (MA 200) as a negative trend signal. Ethereum losses were extended in the prior day to $2,315 which means that the crypto markets remain under heavy pressure at the end of a volatile week. However, history shows moving average crossovers as lagging indicators that are based on backward-looking data and so cannot be utilized as standalone indicators. After Ether’s death cross completion, the market seems oversold and is due for a return as it finds support above $2,300. At the time of this post, ETH/USD rebounded from daily lows to $2,542 gaining almost 4% in 24 hours.

Key Levels
Resistance Levels: $3,200, $3,000, $2,700
Support Levels: $2,300, $2,000, $1,700

ETH/USD Daily Chart: Ranging

ETH/USD Daily Chart

ETH/USD slid to a five-month low of $2,159 on Monday and managed to rebound before the $2,000 tight support area, clinging to a ray of hope that a bullish reversal could develop in the near term. While the relative strength index is pivoting below 40, flashing oversold conditions, the price continues upwards within the neutral territory.

Ether’s consolidation suggests the sell-off could gain extra legs before the bulls come into play. The negative intersection between the moving average (MA 50) and moving average (MA 200) backs this narrative as well. On the upside, if the price crawls above the nearby $2,500 resistance, it might journey to $2,700.

ETH/USD 4-Hour Chart: Ranging

ETH/USD 4-Hour Chart

On the 4-hour chart, Ether looks to reclaim and sustain a breach above the $2,500 horizontal support turned resistance which kept the market on the downside over the past couple of days. The short-term relative strength index (RSI) endorses the current positive momentum in the price as the indicator attempts to recover.

On the upside, there are several barriers, that the bulls need to clear to gain traders’ confidence. If buyers successfully breach the 4-hour moving average (MA 50) hurdle, the horizontal line at $2,700 could block the way towards the $3,000 psychological zone and the descending moving average (MA 200) around $3,200.

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