The crypto markets remain slightly in a sea of red after yesterday’s losses but still exhibit further downside potential. ETH remains in a negative mode on Friday as bears probe again below the key $3,000 psychological barrier following a short-lived spike near $3,200. Ethereum’s analysis is backed up by rising negative momentum on the daily chart and moving average (MA 50) support setup breached, with prior upticks providing better selling opportunities as long as the price remains below the $3,000 level. At the time of analysis, ETH/USD has registered an intra-day low of $2,933 while trading below $,3000 and daily MA 50. Ethereum has continued to maintain a surge in social volumes. ETH’s address activity ticked bullish numbers despite the aforementioned. Per Santiment’s on-chain analytics provider, prices contrary to popular belief, tend to move in the opposite direction of what the majority predicts. As a result, positive sentiment could be injected, as prolonged negative weighted sentiment might potentially drive a rally.
Key Levels
Resistance Levels: $3,500, $3,200, $3,000
Support Levels: $2,800, $2,500, $2,300
ETH/USD Daily ChartEthereum has had a fall following its recent attempt to break the $3,200, and it is presently trading below $3,000. On the daily chart of the ETH/USD market, the current price relative to the MA 50 is used as a trend indicator. ETH/USD breached the MA 50 primary support level at $3,000 for the second time in the month, which is now functioning as a barrier.
Although the price fell to a low of $2,880 during the week, it recovered some ground, but the promise for a rebound faded when it reached $3,179. ETH struggled to hold above the daily MA 50 (now at $3,000), adding to market bearishness. The pattern may continue as long as spot prices remain below the MA 50.
ETH/USD 4-Hour ChartAs ETH trades below the critical important $3,000 barrier, it remains vulnerable to further losses. On the lower time frame, the bearish RSI is currently flashing a steeper fall below the 50 midlines. Bulls must keep the ETH/USD pair above the $3,000 barrier to avoid further selling below the critical ascending trendline.
A consistent drop below this line could indicate that the bullish trend has ended and that the price is willing to return to the range seen in early 2022. The ETH/USD pair is only positive when it trades over $2,800; the primary resistance levels are $3,000 and $3,200, respectively. Sellers may test below the ascending trendline if ETH/USD pair falls below $2,800.
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