Ethereum Rises Marginally; Will ETH Regain Its Momentum?

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 Price ChartETH 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 ChartETH 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. 

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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.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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