In the volatile world of cryptocurrency, Ethereum (ETH) is currently experiencing a downturn. The largest altcoin, second only to Bitcoin, has been trading in a range between $1,750 and $2,200 since the recent downtrend that began on March 10. Despite managing to overcome the 21-day Simple Moving Average (SMA) resistance, Ethereum has been unable to breach the $2,000 mark. If buyers had been successful in this, it could have propelled the altcoin to highs of $2,400 and potentially even $2,800.
Today, Ethereum managed to stay afloat above the $1,800 support level, despite dropping to a daily low of $1,883. Looking ahead, if the altcoin retraces its steps, it’s likely to fall back into its previous trading range of $1,750 to $2,200. A breach of the current $1,750 support level could result in a deeper fall, potentially dragging Ethereum down to a low of $1,550. For now, the altcoin is maintaining a position above the $1,800 support.
Previously, the price bars of the cryptocurrency were held in check by the moving average lines. However, the bears have now managed to break below the 21-day SMA support, resulting in a downward slide. This suggests that Ethereum’s decline is likely to continue. The moving average lines on the daily chart have also shifted downwards, indicating a bearish trend.
As for technical indicators, critical resistance levels are set at $4,000 and $4,500, while the key support levels are at $2,000 and $1,500. The question now is – what’s next for Ethereum?
Currently, Ethereum finds itself in the oversold region, trading near the bottom of the chart but still clinging to the $1,750 support level. If Ethereum can maintain a position above this level, it will likely continue to move in its current range. Should it come to test the $1,750 support level for a second time, it will be a crucial moment for the altcoin.
While the future of Ethereum is uncertain in the short term, it’s important to remember that this analysis and forecast are based on the author’s personal opinions. They are not intended as a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. As always, potential investors are advised to conduct their own research before making any investment decisions.
