Ethereum is currently experiencing a challenging phase as its price has dipped below key moving average lines, signaling a rejection at the 21-day simple moving average (SMA). This downturn follows a period of sideways trading that has persisted since November 21, keeping Ether above the crucial $2,800 support while remaining below the moving average lines.
In recent trading sessions, buyers have managed to uphold the price above the 21-day SMA, yet momentum has stagnated at the $3,400 resistance and the 50-day SMA. For Ethereum to reignite its bullish trajectory, it will need to decisively break through the $3,400 resistance level alongside the 50-day SMA.
As of today, Ethereum is witnessing a decline, facing rejection at the 21-day SMA and edging closer to the current support level of $2,800. Should this support be breached, the price could potentially decline below $2,630. Conversely, if the support holds firm, the cryptocurrency is likely to continue trading within this established range.
Analyzing the technical indicators, the moving average lines remain horizontal, with the price oscillating above and below the 21-day SMA support. On the 4-hour chart, price action has reverted below the downward-sloping moving averages, and doji candlesticks have emerged, indicating reduced volatility in price fluctuations.
Currently, Ethereum is trading within a range, with support identified at $2,800 and resistance at $3,400. Price movements have been relatively stagnant in the middle of this range. It appears that the largest altcoin will maintain this range-bound behavior for several days as the market awaits clearer direction.
This analysis serves as an opinion piece and is based on data collected by the author. It does not constitute a recommendation to buy or sell cryptocurrency and should not be interpreted as an endorsement by Coinidol. Readers are encouraged to conduct their own research before making any investment decisions.
