Ethereum News: Last week was a rough week for Ethereum, which is hailed as the world’s largest altcoin. It managed to top the $2,400 level with the most recent recovery, but bears have been dominant ever since. Weekly losses are above 10% as selling pressure continues to rule the price action.
However, there were plausible factors in the market suggesting that ETH could quell losses at $2,050.
ETH has experienced a marginal decline of 0.24% in the last 24 hours.
Ethereum 4-hour chart
As it went bearish once again with the 200 SMA (green) and 50 SMA (yellow), Ethereum dropped 15% from $2,400 to $2,050 in just two days. In the last few days, the bulls protected the price as sideways movements were observed. To avoid a breakdown, bulls must experience short-term losses above $2,050.
This support level not only coincided with the lower trendline of an up channel, but was also supported by the 200 SMA on the daily timeframe. Interestingly, there has been a fair amount of interest noted for ETH at this price level in the Visible Range.
According to the Squeeze Momentum Indicator, the bearish momentum is receding. However, a contraction was observed in the market and the lower activity indicated some more sideways movement before a stronger trend emerged. The MACD closed above a bullish cross and the histogram saw a move above the half line. Meanwhile, +DI of Directional Movement Index struggled to break above -DI, which was interpreted as a development that would highlight the beginning of an uptrend.
While the indicators are pointing slightly up, the 50 SMA and 200 SMA have fluctuated around $2,240 which has the effect of capping short-term gains.
It is expected that Ethereum will soften the short-term decline of the defense line at $2,050 and even face a temporary rise. For investors, it would be safer to wait for more precise clues before making an investment, even if the pressure process continues at support level for a long time.