Ethereum, now the reigning second-largest cryptocurrency in terms of market capitalization, is now down by its peak to a huge margin. Its immediate support levels breaking and profit booking taking place at every upside movement indicate downtrend movement in the short time frame. ETH now carries a combined market cap of over $300 billion, but this capital is threatened by the constant downtrend movement of ETH. Even the revered 200 DMA levels now lie close to 40% above the current value of $2536, which comes around $3500. But this curve is constantly moving down to new lows.
ETH spirals into a narrow trading zone with the potential to give a negative breakout in the immediate time frame. Even the supports are being tested repeatedly. With the decrease in relative strength index over the last couple of weeks, we are witnessing a tough challenge for ETH to become trending again.
ETH trades between the positive and negative trendline indicating a potential breakout zone in the near term. RSI dipping to the 40s indicates a massive sell-off at higher valuations. With the upcoming arctic upgrade to be launched in June 2022, we can expect ETH to maintain a negative trend in the short term. The story is, however, a lot different in the long term. Click here to know more about the possible price levels of ETH in the long term.
ETH has been on a constant rise since 2020, and the levels we are witnessing right now are close to its strong support level of $2100. The falling value should get some support near the $2100 levels in the long term and continue to move upwards. With volumes still to match Mid 2021 highs, there is huge potential in ETH. The previous two candles have a higher downside wick, indicating buying at lower levels although there is overall profit booking.
This scenario can play out in favor of ETH investors as the crypto would touch fresh highs in a longer duration. $3600 would be a profit booking level while $2000 would be a perfect buying level. In between, investors and enthusiasts should develop their biases.