ETH Price Extends Losses Below $2,000; What holds Next?

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ETH price sinks extending the previous session’s losses. The price follows the footstep of the BTC, which fell more than 4% amid the panic selling in the crypto space. As the price proceeds toward the crucial 200-EMA on the weekly chart frame, the investors refrain from discount buying opportunities.

  • ETH price slid 7% moving in sync with the broader market meltdown on Thursday.
  • A move towards $1,700 is what investors are looking for as the price breaks the psychological $2,000 mark.
  • However, a daily close above $2,200 would make bulls cheerful.

ETH price continues south

Source: Trading view

On the daily chart, the selling pressure was structured amid market participants, which leads to heavy profit-booking, and a correction in the ETH price since April 3. Looking back at the chart, the price surged nearly 43% from the lows of $2,499.0 made on March 14. In the process, the price attempted to break a consolidation that extends from January 12. But, the bulls remain unwilling to further extend the gains and fell back to the trading channel.

Now, the current price action suggests the ETH sellers finally won the tug-of-war, as the trading range broke on May 9.

Source: Trading view

On the weekly chart, a break below the 200-day EMA (Exponential Moving Average) at $1,624.47 would result in further depreciation in the price towards March 2021 lows near $1,400.

On the flip side, a spike in the buy orders might result in a relief rally for the bulls. A move toward the session’s high could mean a recovery back to $2,400.

The relative strength index (RSI) is trading at 43. The oscillator slips below the average line on April 4 after hovering for a while.

As of writing, ETH/USD is exchanging hands at $1,907, down 7.85% for the day.

 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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