ETH price hovers near the multi-month support with a negative bias. ETH opened lower and swiftly recovered to buck the downside momentum. But, the recent downswing pushed it toward a crucial juncture from where the downside in the price weighs more. A bounce back off the immediate support level might provide space for moving higher and collecting the buy-side liquidity.
ETH price sustains a crucial level
ETH’s price fell continuously since it made record highs near $4,867 in November. The formation of the ‘spinning top’ resulted in the price correction with depreciation of nearly 55% to the swing lows of $2,198.24. Now, the ETH price trades near the crucial support zone, where there is room to move further lower, given the lack of significant bullish volume.
However, the formation of the ‘Bullish piercing’ pattern makes the bull hopeful of some quick recovery. The move is further supported by the high volumes suggesting a probability of gain towards $2,600. An acceptance above the level will make a further attempt to take out the descending trend line of the parallel channel that coincides with $2,800.
The relative strength index (RSI) trades below the average line and approaches moving higher. Still, it reads below 40.
On the flip side, a shift in the bearish sentiment could mean an immediate pullback in ETH price. In that case, the price could dwell toward $1,700.
As of publication time, ETH/USD reads at $2,428, up 8.22% for the day. According to CoinMarketCap, the second-largest cryptocurrency holds the 24-hour trading volume at $46,761,621,186.
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