Ethereum [ETH] suffered a brutal setback as it sliced through a stable support floor and fell below the $3,000 level for the first time in over four weeks. Despite the bulls stepping in for recovery, the world’s largest altcoin was still down 7.75% over the past week. The sudden downtick stirred the volatility in the market.
Following the minor resurgence of bullish pressure of 1.08% over the past 24-hours, Ethereum [ETH] increased to a price of $3,033. At the time of writing, the crypto-asset registered a market cap of $360 billion and a 24-hour trading volume of $27.2 billion.
Ethereum [ETH] Daily Price Chart:
Sustained selling pulled ETH below the 50 daily moving average [Pink] which has hurt its price progression on the chart. On the other hand, the 100 [Blue] and 200 [Yellow] DMAs continued to hover beneath the candlesticks. The volume on the daily chart appeared to be moderate which could aid in pushing the price back higher.
Furthermore, the formation of a falling wedge pattern depicted that a potential bullish breakout could be on the cards even as price oscillated downward between the two trendlines. A successful breakout could erase the losses sustained during the latest sell-off.
The technicals, however, do not look very promising. The Chaikin Money Flow [CMF], for one, dropped to the mid-point signifying that capital inflow in the coin market has taken a substantial hit following the downturn. A similar sentiment was echoed by MACD which flashed red. Additionally, the Relative Strength Index [RSI] fellow towards 40-line closely mimicking the price of action of ETH and indicating that sellers have an upper hand. But the falling wedge formation of the indicator showed reversal signs.
If buyers sustain the bounce, Ethereum could gradually move up toward the 50 DMA at $3,291 before targeting other resistance levels of $3,636, $3,962, and $4,183. The support levels for the asset stood at $2,721, $2,590, and $1,776 respectively.