Ethereum [ETH] underwent a major correction as it hit a reverse swing even as the long-awaited Ethereum 2.0 mainnet launched successfully. ETH breached through the first major resistance level at $632 before declining to a mid-day low of $563.01. The marketwide pullback triggered over a 10% drop shortly after Bitcoin’s downside correction. Despite partially reversing the losses, ETH was trading below the $600-level.
It noted a decrease of 1.79% over the last 24-hours driving its price to $598.2. At the time of writing, the second-largest cryptocurrency registered a market cap of $67.8 billion and a 24-hour trading volume of $28.3 billion.
Ethereum [ETH] Daily Chart:
The daily moving averages depicted a bullish case for the coin. The 50 DMA [Pink], as well as the 200 DMA [Blue], continued to lay low settling well below the ETH price candles, with no hints of bearishness in the near-term.
Additionally, the rising gauge between the two daily moving averages was indicative of a long-term bullish outlook among the Ethereum holders despite the abrupt fall. The 50 DMA acted as a firm support level for the coin at $455 while the 200 DMA formed support at the $346 level.
Bearish Hints Continued To Loom
Despite the strong bullish momentum, the technicals did not appear to be entirely positive. On the daily Ethereum chart, the RSI formed a bearish divergence as it created an overbought reading followed by a lower high that matched corresponding higher highs of ETH’s price.
In yet another bearish projection, the volume indicator [OBV] suggested that the increasing prices were in contradiction to the declining volume, as it also formed a bearish divergence. Thus, weak volumes behind the latest price recovery hint at a potential sell-off in the coming days.
Ethereum needed to move through the pivot level at $595.2, which it recently breached to aid a run at the first major resistance level at $618. If ETH manages to surpass the aforementioned level, it could then target yet another level at $706.9.
However, if the bears gain control, Ethereum’s price could sink to its immediate support level of $521. Its next support points stood at $455 and $346 respectively.