- ETH is currently down more than 16% over the last week.
- If this selling momentum continues for ETH, it could mean that the altcoin loses its support level.
- Sellers might have been driving the momentum in the market as ETH is below the 20 SMA.
Things have not been looking great for Ethereum (ETH) as it has been faced with losses over the last week. According to the crypto market tracking website, CoinMarketCap, ETH is currently down more than 16% over the last week. In addition to this, the ETH price also fell by 1.61% over the last 24 hours.
In a way, this could be attributed to a broader market weakness seeing as Bitcoin (BTC) also slid on its chart to now trade at just below $21,000.
If this selling momentum continues for ETH, it could mean that the altcoin loses its support level which could lead to further losses.
As ETH is currently trading at $1,571.83, it is very close to $1,500, which is its immediate support level. If ETH manages to stay above this support level, the altcoin might not trade close to the $1,300 support mark.
ETH’s resistance now lies at $1,700. A move above this could push the price to touch $1,900.
When looking at the ETH/USD one day chart, it is clear that the altcoin’s price movement indicated an increase in selling pressure.The Relative Strength Index is below the half-line, which means that sellers are exceeding buyers.
This is connected to the bearish price action seen from ETH over the last few days. Sellers might have been driving the momentum in the market as ETH is below the 20 SMA. To make things worse, sellers are losing confidence in the asset because of its downward movement.
The Moving Average Convergence Divergence (MACD) of ETH took a bearish crossover and painted red histograms, which could be seen as a sell signal for ETH.
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