Ethereum has lost more than 30% of its value from the all-time high traded at $4,387. Initially, the correction was more like lock-step trading whereby short-term support levels prevented sharp losses. However, during the previous weekend session, the market instability saw Ethereum dive under $4,000 and tested support at $3,100.
A trend reversal occurred on Monday with Ether trading above $3,500, but the recovery was short-lived following another bearish jab in Wednesday’s Asian session. Ethereum dived back to $3,100 but this time extended the bearish leg under $3,000.
Ethereum hunts for formidable support
Ether is trading slightly above $2,900 at the time of writing. Losing the 200 Simple Moving Average Support (SMA) has drastically changed the short-term technical perspective. Therefore, all eyes are focused on Ether’s ability to hold $2,800.
ETH/USD four-hour chartRead more
ETH/USD price chart by Tradingview
The various technical indicators like the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) have vivid bearish signals, as highlighted on the four-hour chart.
For instance, the MACD has expanded the gap beneath the mean line (0.00). Moreover, the MACD line (blue) increasing divergence below the signal line is a massive bearish signal.
At the same time, the RSI is in a sharp downward movement toward the overbought region. This means that the path with the minor hurdles is south. Ethereum’s breakdown under $3,000 would trigger massive sell orders. The increase in overhead pressure will leave tentative support levels at $2,800 and $2,500 vulnerable to losses.
Ethereum intraday levels
Spot rate: $2,950
Support: $2,800 and $2,500
Resistance: $3,200 and $3,600
The post Ethereum Price Prediction: ETH breakdown to $2,500 seems imminent appeared first on Coingape.