Ethereum Dropped Below $3,100 Support Area – Will Decline Further Lower?


Ethereum bears have regained momentum after hitting an all-time of $4,150 to $4,350 price area. Ethereum dropped below $3,100 significant support level. Will the price decline further lower in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s ETH/USD Technical Analysis. 

May 21, 2021, | AtoZ Markets – Ethereum price climbed today morning during the Asian session against the U.S. Dollar. ETH up by 30.32% today, which is the biggest single-day percentage gain ever. The move upside pushed Ethereum’s market cap up to $330.82B, or 18.22% of the all-out cryptocurrency market cap. At its most elevated, Ethereum’s market cap was $479.29B. Ethereum is currently trading around $2,750 area and trying to push downside. As per the current price action context, the price may face strong resistance at the dynamic level of 20 EMA on the intraday chart in the coming days.

Ethereum Dropped Below as the Investors Are Worried

Ethereum is currently residing near $2,750 area and trying to push lower. After rejecting $4,350 to $4,150 key area, the bears pushed the price down impulsively and hit April 2021’s low.

Ethereum Dropped Below

Image: ETH 4 Hour Chart

According to the 4-hour chart, Ethereum dropped below and currently trading around $2,750 area. As per the current scenario, the price may decline further towards $2,600 to $2,500 area in the process. So, if the price declined towards $2,600 to $2,500 support area and bounced higher with an impulsive bullish candle, the bulls may regain momentum and recover higher towards $3,100 to $3,200 area in the coming days. On the contrary, if the price can break below $2,600 to $2,500 area with an impulsive bearish candle close, the bears may sustain the bearish pressure towards $2,000 to $1,850 area again in the days ahead.

In addition, the dynamic level of 20 EMA is currently residing above the price, which may work as strong resistance to push the price downward. Also, the MACD lines are currently residing below the 0.00 level and had a bullish crossover. It indicates that the bulls may regain momentum in the process.

ETH May Recover Further Upside

According to the daily chart, Ethereum dropped below, but the overall momentum is still bullish. As per the current price action, if the price can have an impulsive daily bullish candle close above $2,500 to $2,600 support area, the bulls may sustain the bullish pressure towards $3,100 to $3,200 area as a first target. The second target will be $4,150 to $4,350 key area if the price can break above $3,100 to $3,200 area in the coming days.

Ethereum Dropped Below

Image: ETH Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the bulls may regain momentum if the price can break above the dynamic level, along with the Kijun line and the Tenkan line in the days ahead. However, the Kumo Cloud is still holding the price as strong support. So, it indicates that the bulls may continue to push the price higher in the process.

To conclude, as long as the price residing over $2,500 to $2,600 support level, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days. 

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