Ethereum downtrend enters day 2 with no signs of recovery in sight. The apex altcoin is currently struggling to hold prices above critical support. The latest barrier it may test in the coming hours is the $2,150 mark.
It opened trading at $2,310 and dropped to a low of $2,165. This comes after it made attempts at recovering from the previous day’s losses and it peaked at $2,348. The current price suggests that the asset is down by almost 5%. It is also worth noting that ETH dropped to its lowest valuation in more than fourteen days.
The previous day’s losses also mounted. The apex altcoin started trading at $2,454 but began retracing after a small increase. Due to the surge in selling volume, the asset dropped and tested $2,300 before rebounding. In the end, it closed with losses of almost 6%.
With the downtrend in top gear, liquidations are also reaching new highs. At the time of writing, the total liquidated fund exceeds $355 million. As with the trend, long positions make up the bulk of the total funds as they accounted for more than $310 million. However, amidst the massive decline across the market, long positions are on the rise on Bitfinex.
Current Has Little on Ethereum Long-term Posture
Amidst current market trends, long-term indicators like the Moving Average have barely shown any reaction. For example, the 200-day MA is still on an uptrend. On the other hand, the 50-day MA may be a cause for concern as the metric halted its uptrend.
Aside from the elongated timeframe outlook, short-term indicators like the Moving Average Convergence Divergence are silent. Since it had a bearish divergence three days ago, both the 12-day and 26-day EMAs are seeing a massive decline. Additionally, the Relative Strength Index is at 40, further emphasizing the increase in selling volume. How low will ETH go?
Key Levels to Watch
Vital Support: $2,150, $1,900, $1,750
Vital Resistance: $2,300, $2,500, $2,700
Following the most recent downtrend, chances of ETH dropping below $2000 are very high. However, before such event takes place, the asset must break the $2,150 barrier. A closer look at the mark suggests massive demand concentration around it. A clearer evidence of this is that since it became support in December, the cryptocurrency under consideration did not close below it.
The same trait is what we see in the $1,900 mark. Since prices surged above it in November, ether only tested it once. If that fails, the next long-term support is $1,750. Fundamentals point to the fact this might not happen soon.
On the other hand, a change in current trading conditions could send to retest lost levels and resistance. One such mark is the $2,300. Previous trading actions show that the apex altcoin will breeze past it. However, the $2,500 barrier might be harder. Regardless of the number of failed attempts, ETH broke it in one day. With a massive buying volume, the said mark will also become a positive level.
The toughest mark remains the $2700 barrier. Due to ethereum not gaining stability above it during the previous attempt, it may take several trials to achieve this.
