Ethereum price has tried to maintain beyond the support at $3,650 since the 4 December 2021 sudden crash. The leading altcoin has retested this lower support thrice. Moreover, the altcoin showed a high probability of kick-starting a recovery move as it vibrated within a plunging wedge setup. Nevertheless, the current selling momentum across the market ruined this vital support, indicating extended price correction.
Vital Technical Points
- The daily RSI approaches the oversold territory.
- Ether Fear & Greed Index suggests ‘fear’ sentiment.
- Ethereum’s daily trading volume stood at $29.4 billion, suggesting a 131% increase.
Ethereum (ETH) has had its price resonating inside a declining wedge pattern. Furthermore, the altcoin remained within the setup for over one month, translating to the correction phase. Although this setup usually presents a bullish opportunity plus upward resistance breakout, the latest crypto market crash changed the narrative.
On 5 January, Ether price finance broke a critical technical supports confluence. It was a support trend-line, $3,634, and 0.382 FIB retracement area, suggesting Ethereum will extend the retracement movements.
The leading alternative coin still sustains its price beyond the 200 Moving Average, keeping its overall bullish outlook. Nevertheless, the critical moving averages (20-, 50-, and 100) might offer an effective resistance area. The daily RSI (32) indicates a dip into the bearish region, highlighting selling momentum in the cryptocurrency marketplace.
Ether Price Might Retest Descending Trendline
While publishing this new, ETH coin has its price actions around the $3,280 level, following a 4.5% intraday loss. Nevertheless, the alt securing support at daily 200 MA might rise, retesting the new resistance mark at $3,600.However, Ethereum has chances to extend its downward movements. The token’s vital horizontal resistance zones are $3.6K and $3.9K. On the other side, ETH’s support levels stood at $3,156, then $2,766.
ETH Fear & Greed Index
The ongoing crash in the crypto space saw ETH’s fear & greed index rating at 25/100. That suggests fear sentiment by market players. Meanwhile, the altcoin remains vulnerable to plummets as it mimics Bitcoin actions. For now, BTC battles with bearish dominance at $41,310. Further drops in Bitcoin price will translate to more downtrends in Ethereum.
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