Ethereum Price Lost 20% Weekly, What’s The Key Support Now?

Ethereum price has witnessed a tough time lately, the altcoin logged heavy losses over the past one week. Broader market weakness could be blamed for the coin’s current price momentum. Bitcoin slid on its chart and was trading at $21,000 at the time of writing.

Other altcoin also depreciated following BTC’s price action. Over the last 24 hours, Ethereum price fell by 4%. It has been a consistent downtrend after the coin lost the $2,000 price mark. The technical outlook for Ethereum price was also bearish as sellers had taken over at the time of writing.

If selling momentum takes over, it can be so that Ethereum might lose its support level and might fall considerably. The coin also formed a descending line which has intersected  with the tough resistance  mark of ETH.

If Ethereum manages to stay above its immediate support level then the coin might not after all trade near the $1,300 support mark. The global cryptocurrency market cap today is $1.05 Trillion, with a 2.1% negative change in the last 24 hours.

Ethereum Price Analysis: One Day Chart Ethereum was priced at $1,567 on the one day chart | Source: ETHUSD on TradingView

ETH was trading at $1,567 at the time of writing. It has been a constant free fall for ETH ever since the coin fell below the $2,000 price mark. The current tough resistance for the altcoin was at $1,700 and a move above that will push Ethereum price to touch $1,900. It is still to be seen if Ethereum maintains its stance above its immediate support level.

At the present the coin was trading extremely close to $1,500 which is its immediate support level. The descending trendline was also crossing the price ceiling of $1,700, this makes the aforementioned level an important price ceiling. Amount of ETH traded increased depicting that selling momentum moved up.

Technical Analysis Ethereum flashed increased selling pressure on the one day chart | Source: ETHUSD on TradingView

ETH’s current price movement depicted an increase in selling pressure on its chart. The Relative Strength Index was below the half-line as it meant that sellers exceeded buyers at press time.

This was related to bearish price action for the coin. Ethereum price was below the 20-SMA, a reading above that meant that sellers were driving the price momentum in the market.

Ethereum depicted sell signal on the one day chart | Source: ETHUSD on TradingView

ETH’s downward movement on its chart has made buyers lose confidence in the asset. Moving Average Convergence Divergence indicate the price momentum and chance of a change in the momentum. MACD underwent bearish crossover and painted red histograms which are related to sell signal for the coin.

Bollinger Bands portray the price volatility and the price fluctuations. The bands were parallel and sufficiently wide which meant Ethereum price might hover near current price level over immediate trading sessions.

Featured image from UnSplash, Chart from TradingView.com