Ethereum has been on the downtrend since the start of the week and is showing no signs of stopping. It ended the fifth day of the seven-day period with no notable losses but a red candle which continues its spree.
This trend has resulted in fear among traders who are still struggling with uncertainty as to next price actions. Nonetheless, the asset is down by more than 11%. It has lost all of its accumulated gains due to the correct situation.
Ethereum Flips the Support
Due to the current downtrend, ether has retested the $1,000 support. Unfortunately, the mark fell during the most recent selling congestion. A few hours to the time of writing, the altcoin hit a low of $997.
The most recent state of the market has raised more concerns for traders. Aside from the dwindling numbers on the fear and greed index, several indicators are threatening to flip bearish.
One such is the Relative Strength Index. The metric is at the threshold of the oversold region as it is currently a little above 30. If the downtrend continues, we may ether be oversold before the end 0f the week.
Another indicator is the Moving Average Convergence Divergence. Throughout the previous intraweek session, it has been on an uptrend and has not shown any reaction to the consistent price decrease.
However, the 12-day MA seems to have hit a wall has it has stopped its uptrend. It is also showing signs of dipping as the ETH fails to recover from its most recent state.
If that happens, both the 12-day and 26-day EMA are bound to intercept, a bearish divergence. This may mark the start of more severe selling pressure. More critical levels may fall during this bearish round.
Nonetheless, the bulls are suffering more and more liquidation in the derivatives market. Over the last 24 hours, more than $200 million has been liquidated.
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