The current bearish market sentiment is no surprise to investors as the market veterans were quite aware about the correction and volatility to happen soon. While the largest cryptocurrency by market capitalization—Bitcoin continues to consolidate below $11k on the daily chart, marking an impression similar to the previous accumulation below $10k for around 11 weeks.
Ethereum—the largest altcoin of the global crypto market is no exception when it comes to trading with a negative crossover. ETH coin just like any other altcoin including Bitcoin has been experiencing a grim movement against the US Dollar and over the past 24 hours it bottomed out close to major support at $332.
The price dynamics is one thing but the 2nd generation crypto has been often compared for its platform and aligned return on investment with third generation crypto like Cardano. Although, Ethereum has turned old and the platform may appear obsolete, ETH 2.0 is believed to be the upgrade of the year and bring back the lost momentum.
Ethereum Price Analysis:
It was until August 2020 when ETH coin was seen gaining after the major market crash when it hit the rock bottom below $100. However, the previous quarter has been notably volatile, and ETH/USD faced the sae while hitting a fresh YTD high at $488, at the onset of the previous month. However, with a setback, Ethereum lowered to test supports around $310, while currently trades around $340.
The intraday happens to draw a negative sentiment and the bearish candlesticks are breaching the lower 20-day Bollinger Band as they narrowed. Moreover, ETH/USD due to a bearish sentiment is lacking support from 50-day and 200-day daily MA on 5-hourly chart.
The other two technical are also confirming the negative pull back as the signal line crosses above the MACD line. And the RSI of the coin is inclined towards the support area and lies at 38.00.