- Traders jittery as Ethereum trend analysis remains unclear
- ETH/USD barely holds the $1,000 level and faces stiff resistance upwards
- The recent low of $911 reflects a weakening bullish wave
Ethereum is currently recovering from the recent meltdown in the wake of broader correction in the crypto market. Most of the coins are down from their annual highs. ETH/USD pair suffered a daily loss of 2.05 percent and is currently hovering around the $1,060 level. The weekend correction has put the cryptocurrency near critical support levels.
Ethereum price movement in the last 24 hours – Slight recovery with a downward bias
After a slightly bearish start to the week, Ethereum trend analysis is now neutral with a negative bias. The price has recovered from a recent low of $911 and is back into the Bollinger Bands. Bulls are trying to close the price above $1,100 in a bid to stimulate more buying.
Ethereum price action is also nearing the lower swing high of the daily price movement, near $1,340. The price is likely to face stiff selling pressure above $1,200 and is expected to continue correction after that. The low of $911 shows that ETH/USD did not hesitate to go below $1,000 in the wake of a crypto market correction. The underlying bullish strength may be missing here as per Ethereum trend analysis.
Finding late support, the Ethereum trend analysis recovered quickly to rise above $1,000. The first significant support lies at $1,000 and then at $900. Bears will exhaust their selling spree soon since the technical indicators are deeply in the oversold region on the hourly charts.
ETH/USD 4-hour chart – Support at $1,000 saves the day
The massive buy wall lined up near $1,000 support proved pivotal for the bulls. The price broke past the vital resistance and extended selloff to touch $911. The remarkable recovery is due to a minor uptick in the broader crypto market. The last few hours have emanated mixed signals as both bulls and bears take a breather after stabilizing the price above $1,000 psychological support.
The ETH/USD pair is yet to firmly test essential support and resistance levels on the daily charts. The $1,200 pivot level is the next level to watch out for in the Ethereum trend analysis. The first major resistance lies at $1,350, where the bears will hope to resume another round of selling.
Barring an extended crypto rally, the ETH/USD pair is not likely to rise beyond $1,350. Bollinger Bands are also currently limited to $1,350 in the Ethereum trend analysis. So, any quick recovery to annual highs is not within sight. In the short-term, the $1,253 pivot level would offer significant resistance. On the downside, the bulls must guard the $1,000 level where the 23.6 percent Fibonacci level will ward off any extended selloff.
How long will the Ethereum meltdown continue?
The meltdown in Ethereum price has been contained by the recent uptick in the broader crypto market. The world’s second-biggest cryptocurrency hovers near the $1,070 level and is around 18 percent down from the past week’s high. The drop in the ETH market cap has been estimated at $126 billion.
Ethereum is closely following Bitcoin, which itself has come down from $42,000 highs. The weekend saw a significant portion of the recent weekly gains wiped from the ETH‘s price. Stellar and Bitcoin Cash are also down significantly. Historically, sharp price drops happen due to any negative news of fundamental issues. This time, however, the decline can be attributed to multiple factors.
The rise in the US Dollar has taken off some shine from the cryptocurrency realm. The geopolitical crisis, particularly in the US, has meant that safe-haven assets are losing value. The news of Donald Trump’s impeachment has sent US Dollar soaring. The financial world is watching the news with a jittery mind as the political arena dictates policies.
Ethereum trend analysis to be driven by fundamental factors
The current weakness in cryptocurrencies stems from fundamental reasons. From a geopolitical crisis to profit booking in the crypto sector, the reasons are manifold. Ethereum is also facing slow technical developments, mainly the ETH 2.0 upgrade.
On the daily timeframe, ETH/USD faces strong resistance at $1,500. The price is still far beyond the 100-day EMA, therefore cementing the bullish wave’s long-term perspective—the recent correction as bought overbought RSI from 87 to the present 65 levels. Therefore, in the short-term, the Ethereum trend analysis is likely to face heavy winds to reclaim annual highs.
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