Ethereum has been in a downtrend since last Wednesday. The retracement started as the bulls failed to sustain buying pressure. As a result of the selloff, ETH lost several supports and closed the past week, losing more than 8% of its value per unit. We also observed that the most recent price correction has resulted in ETH losing its pivot point.
The second largest coin by market cap closed the past seven-day period at $2,622. The downtrend continued to the first day of the current week as it dipped as low as $2,500. During the series of dips, the Relative Strength Index (RSI) was heading for the oversold region as it hit a low of 37. However, as market conditions improved, RSI hit rebound at this level and is currently enjoying an uptrend.
Ethereum also suffered a bearish divergence last week that indicated the start of the selloff. Now, the largest alt is enjoying more uptrends as it gains stability above. The most recent price indicates that ETH is up by almost 4% over the last two days.
We also observed that the coin current fit has also positively impacted MACD as we may see a bullish convergence provided market conditions remain constant. Interestingly, another key indicator is printing a positive outlook.
Displaced Moving Average (DMA)
Although not mostly talked about, DMA is one of the most accurate metrics. Traders watch out for a flip of this indicator as it may herald the start of a new bullish trend or bearish dominance. This time, ether flipped the mark due to an uptrend. This may be an indication that the coin may enjoy more buyer-friendly conditions.
However, we note a decrease in buying pressure may place ethereum at risk of dipping as low as $2,500. With the flip of the DMA, the bulls may continue to rally the asset and possibly test $2,800 before the end of the current intraday session.
