Ethereum Holding the Bearish Momentum Below $1,600 Area – Will Decline Further?


Ethereum falls 10% on the Asian session as the price faced strong resistance around $1,650 to $1,600 area. Ethereum is holding the bearish momentum below $1,600 psychological level. Will it decline further 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. 

March 5, 2021, | AtoZ MarketsThe move downsides pushed ETH’s market cap underneath to $168.34B, or 11.71% of the total cryptocurrency market cap. At its most elevated, Ethereum’s market cap was $225.07B. Ethereum trading inside the ranges of $1,300 to $1,650 area for an extended period. ETH is currently trading around $1,475 area and trying to recover higher. After bouncing from $1,300 to $1,350 support level, the bulls pushed the price upside quite impulsively, but failed to break over $1,600 to $1,650 event level and push lower again. As per the current price action, Ehtereum may face strong support again around $1,300 to $1,350 area in the coming days.

Ethereum Holding the Bearish Momentum as the Bears Are Optimistic

Ethereum is currently residing near $1,475 area and trying to push the price upside. However, the price is still residing over the Kumo Cloud on the daily chart.

Ethereum Holding the Bearish Momentum

Image: Ethereum 4 Hour Chart

According to the 4-hour chart, Ethereum is holding the bearish momentum and currently trading around $1,475 area. As per the current price action, if the price can have an impulsive bearish candle close below the last 4-hour candle’s low, the bears may sustain the bearish pressure towards $1,350 to $1,300 support area in the coming days. So, if the price declined towards $1,350 to $1,300 support area and bounced higher with a bullish candle, the bulls may recover upward towards $1,600 to $1,650 resistance area again in the process.

In addition, the dynamic level of 20 EMA is currently residing over the price. So, it may act as strong resistance to push the price downside. Also, the MACD lines are currently residing above the 0.00 level and had a bearish crossover, which indicates that the bears may sustain the bearish further in the days ahead.

ETH Bulls Are Still Residing on the Market

According to the daily chart, Ethereum is holding the bearish momentum, but the overall bias is still bullish. As per the current scenario, if the price can have a daily bearish candle close below $1,450 area, ETH may decline towards $1,350 to $1,300 support level in the process. So, if the price reached $1,350 to $1,300 area and bounced higher with an impulsive bullish candle, the bulls may sustain the bullish trend towards $1,600 to $1,650 area as a first target. The second target will be $2,000 to $2,035 key area if the price can break over $1,600 to $1,650 resistance area in the coming days.

Ethereum Holding the Bearish Momentum

Image: Ethereum 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 dynamic level of 20 EMA may act as strong resistance to push the price downward. Besides, the Kijun line and the Tenkan lines may work as a confluence of the dynamic level in the process. However, the bulls may regain momentum if the price can break above the dynamic level in the days ahead. Along with this, the Kumo Cloud may carry the price as strong support.

To conclude, as long as the price residing over $1,300 to $1,350 support level, the bias will remain bullish. A daily close is required to define a certain momentum in the coming days.

 

 

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