Ethereum price steady rise in jeopardy as more declines linger under $2,000

Ethereum has a complex time building on the support at $2,400 for gains above $3,000. In the last few days, the confluence resistance created by the 50 Simple Moving Average (SMA) and the 100 SMA has barred bulls from extending the price action higher.

The downward force becomes apparent by the day with the immediate support at $2,400, vulnerable to immense losses. At the time of writing, Ether trades at $2,455 amid a developing bearish momentum.

Ethereum’s downtrend is far from over

According to the Relative Strength Index (RSI) on the four-hour chart, the bearish action may catch momentum in the near term. For instance, this trend strength indicator forms a lower high pattern, revealing the growing bearish grip. Besides, a break under the mean line will likely trigger massive sell orders as Ethereum explores the gap toward $2,000.

ETH/USD four-hour chart

Read more

BTC/USD price chart BTC/USD price chart by TradingView

The Moving Average Convergence Divergence (MACD) indicator is indecisive. In other words, it seems to be championing sideways trading. However, it is essential to realize that the MACD is settled in the negative region, meaning the bears are more influential.

Traders should look out for the direction of the MACD line in the coming sessions. Note that we will expect another dip in the price if it increases the divergence beneath the signal line. Lower support levels are expected at $2,100 and $1,750, respectively.

On the upside, action above the signal line and perhaps into the positive region will pull Ethereum toward the confluence resistance. Trading above the confluence resistance may catapult Ethereum to the hurdle at $2,700 while setting the precedence for another upswing toward $3,000.

Ethereum intraday levels

Spot rate: $2,460

Trend: Bearish biased

Volatility: Expanding

Resistance: The 100 SMA and the 2000 SMA

Support: $2,40, $2,100 and $1,750

The post Ethereum price steady rise in jeopardy as more declines linger under $2,000 appeared first on Coingape.

Publication date: 
06/11/2021 - 03:58

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.