Critical Turning in Ethereum: Bull or Bear?
The decline experienced throughout the cryptocurrency market in the last two months also hit Ethereum. Ether (ETH) price has fallen to the $3,000 level, losing more than 15% from peaks around $4,100. This decline was not specific to Ethereum. During the same period, the CoinDesk 20 Index (CD20), which broadly measures the entire cryptocurrency market, also lost 17% of its value. However, there have been interesting developments on the Ethereum front in recent days.
According to the TradingView charting platform, the selloff in Ethereum has currently stalled. What lies behind this pause is an important rising trend line drawn from the bottom points in October and January. The bears have been having difficulty breaking this trend line since Monday. This indicates that either the bulls’ resistance is increasing or the bears are losing momentum.
This trend line is of critical importance for technical analysts. The fact that the price remains above this line gives hope that the general upward trend may continue. However, if the price falls below the trend line, it means that the bears will dominate the market and a harsher selling wave may occur.
So which scenario is more likely in the coming days? When we look at technical analysis indicators, we see interesting signals. The first signal pointing to a potential rise in Ethereum price comes from the daily MACD histogram. MACD is a common indicator used to measure the strength and changes in the trend in the market. The return of the daily MACD histogram to positive values is interpreted as a positive signal that the market has regained upward momentum.
Another indicator of price movement gaining momentum on a daily basis is the widely followed 50-hour simple moving average (SMA). If this average value enters an upward trend again, it is considered as evidence that the price is following an upward trend on average and the buying pressure in the market is increasing. This is a reassuring development for investors.
The first resistance level that may be encountered in the short term appears to be around the 50-day SMA, which is around $3,180. This is followed by the falling trend line, which is currently at $3,225 and represents the recent downtrend.
If the price rises above these critical levels, it is predicted that the bulls may attack in the coming days and the upward trend may gain momentum again. But even if the price rises, the job is not over yet. For the upward movement to be sustainable, investor confidence must increase and market volume must increase.
If the price falls below the rising trend line, it means that, as mentioned above, the bears will dominate the market and a harsher sales wave may occur in the coming period. In this case, there may be a decline to the next support level, located around $ 2,500.
During this critical period in Ethereum, it is necessary to follow the market closely and make your investment decisions carefully. Although technical analysis indicators give positive signals, you should always consider expert opinions and your own risk tolerance, as market conditions can change rapidly. This analysis does not constitute investment advice and you are responsible for your investment decisions.
