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Ethereum [ETH] has had a rollercoaster ride this week as it shed gains of more than 14% over the past seven days of trading. The cryptocurrency’s stint above the coveted level of $2,000 was short-lived as it crumbled under the market-wide bearish pressure soon after.
After a minor recovery from the extended sell-off and a mixed start to the day, Ethereum bounced back from a key support level of $1,400.
It was up by 12.26% in the last 24-hours which drove its coin up to a price of $1,535. At the time of writing, the altcoin registered a market cap of $176 billion and a 24-hour trading volume of $26 billion.
Ethereum [ETH] Daily Chart:
As predicted earlier, Ethereum [ETH] broke the ascending parallel channel on the 19th of Feb and underwent a massive sell-off period. So much so that ETH candles tested the second support near to $1,400 following the bearish breakout.
As Ethereum incurred significant losses, the price candles slid below the 50 DMA [Pink] depicting the bearish pressure while the 100 DMA [Blue] continued to tread well below.
Hence, if the token manages to move above the 50 DMA, it could aim for more gains in the near-term.
The technicals does not look bright for the crypto-asset. The Klinger Oscillator, for instance, underwent a bearish crossover on the 21st of Feb and since then the signal line has been dominating its fate.
On a brighter note, KO did hint at a potential convergence and a subsequent bullish crossover in the coming days.
The MACD, however, did not depict any positive signals after undergoing a bearish crossover as it continued to be on the red zone suggesting a plunge in demand.
The RSI also dipped in tandem with the downtrend price action of Ethereum after three months of hovering above 50-median. However, it signaled a mild uptrend aiming for the aforementioned level which was indicative of a minor increase in buying pressure as the coin neared a local bottom.
Key levels to watch in case of an extended market downturn were $1,231, and $1,041 while its resistances were located at $1,624 and $1,964 respectively.