Source: Yahoo Finance
The Ethereum bulls grappled to hold onto the reins as the week started and dipped below $1,600. At present, the price has increased slightly and stands at $1,715.19. It is currently trading below both the 10-day and 50-day Simple Moving Average.
The Moving Average Convergence Divergence (MACD) is also pointing towards a bearish trend, while the Relative Strength Index (RSI) has moved to an oversold condition and presently stands at 29. The oversold condition is also indicated by the Stochastics Indicator.
Should the price move further south, the bears will have to overcome key support levels at $1,562, $1,482, and $1,040, as reported by analyst Anil Panchal from FX Street. A successful breach of $1,040 would open the way to the psychological magnet of $1,000. Meanwhile, for the bulls to regain their footing after slipping, resistance lies at $1,875-85 and $2,000.
However, analyst Akash Girimath also reported that the IntoTheBlock’s Global In/Out of the Money (GIOMA) model indicates that there are close to 2 million addresses that bought nearly 8.9 million Ethereum which led to strong support forming at $1,690.
Taking a look at the broader cryptocurrency market, Bitcoin is currently experiencing a major correction. Elon Musk, the Chief Executive Officer, recently posted a tweet suggesting that the price of Bitcoin ‘seem high.’ Bitcoin’s correction came after the flagship cryptocurrency created a new all-time high above $57,000 over the last weekend.
The below chart shows how ETH/USD has been mirroring BTC/USD (indicated in orange) for the past five days.
BTC/USD and ETH/USD Price Movement (Source: Yahoo Finance)
However, it is prudent to remember that past performance does not guarantee future results, so it will be interesting to watch if Ethereum would set its own course in the coming days, instead of following Bitcoin’s footsteps? Let’s see what the future holds for Ethereum.
ETH/USD (as of Feb 23, 2021, 10.05 a.m., GMT +8) - $1,715.19
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