Ethereum is facing intense selling pressure heading into mid-February, with technical indicators pointing toward a critical test of lower support levels.
Ethereum remains one of the largest, most established blockchains in existence, offering a wide range of services for such things as smart contracts and DeFi applications, and an ecosystem for NFTs.
However, due to some recent losses, the current status of Ethereum means that the cryptocurrency is vulnerable to additional loss because of its technical condition. At press time, the coin is trading at $2,053.14 with an increase of 6.27% over the past 24 hours.
Ethereum Price Action Signals Continued Weakness
According to the TradingView chart, ETH is currently trading below both its 50-day and 200-day moving averages, which indicates that ETH is being controlled by bears for an extended period of time.
Recently, when ETH broke below the psychological level of $2,000, this created more selling pressure to the point that it has moved into the vicinity of $1,800.
Unless ETH makes it back above that level in the near future, then ETH’s risk to the downside will remain elevated going forward until February 15th. If current levels are lost, then there is a good chance the price returns to one of the identified demand zones.
Also Read: Ethereum (ETH) Tests Critical Support: Long-Term Rally Could Hit $10K–$20K
Analyst Maps Key Accumulation Zones
Analysts have provided historical key accumulation zones based on previous dollar-cost average purchases of ETH’s weekly trend. As identified by Ali Charts, the key accumulation areas in which to buy ETH are $1,800, $1,580, $1,350, and as low as $1,080.
The dollar-cost average accumulation strategy has a history of volatility, yet it’s conducive to the longer-term bullish trend of ETH as long as the current upward weekly trend continues.
Despite having an initial impressive showing, Ethereum has dropped in value recently due in part to numerous failed pumps. On the bright side, ETH has been able to bounce off of its previous support levels at $1,800 and establish new support levels at around $1,600-$1,700.
Also Read: Ethereum Transfer Spike Hits 1.17 Million, ETH Price Faces $1,770 Risk
