January 22. 2021, | AtoZ Markets - Ethereum price fall today morning during the Asian session against the U.S. Dollar. Ethereum traded around $1,051.54 by 19:28 (00:28 GMT) on Friday, decline 31.00% on the day. It was the biggest single-day percentage loss since March 12, 2020. The movement downside pushed ETH's market capital under to $123.16B, or 14.20% of the all-out cryptocurrency market capital. At its most elevated, Ethereum's market capitalisation was $159.04B. However, Ethereum exchanged in a range of $1,051.54 to $1,122.79 in the past 24 hours.
In addition, Ethereum is currently trading around $1,170 area and trying to push downside. After bouncing from $900 to $950 support area, the bulls pushed the price higher quite impulsively, but failed to break over $1,420 to $1,430 key level. As per the current price action, the price may face strong support at the dynamic level of 20 EMA on the daily chart in the coming days.
Ethereum Nose Dive as the Price Required a Downside Retracement
Ethereum is currently residing near $1,170 area and trying to decline further. However, the price had a big bullish rejection after hitting $960 support area.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum nose dive and currently trading around $1,170 area. As per the current price action, if the price can have an impulsive bearish candle close below $1,230 to $1,200 area, the bears may sustain the bearish pressure towards $950 to $900 area again in the process. Alternatively, if the price pushes upward and breaks above $1,200 to $1,230 resistance level, the bulls may regain momentum and recover higher towards $1,420 to $1,430 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside. Also, the MACD lines are currently residing near the 0.00 level and gradually sloping down. It indicates that bears may sustain the bearish pressure further in the days ahead.
ETH Bulls Are Still Optimistic
According to the daily chart, Ethereum nose dive, but the bulls are still on the market. As per the current scenario, if the price can have an impulsive daily bullish candle close above $1,200 to $1,230 resistance area, the bulls may recover higher towards $1,420 to $1,430 area as a first target. The second target will be $1,580 to $1,600 area if the price breaks over $1,420 to $1,430 area in the coming days.
Image: Ethereum Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line. So, the dynamic level may act as a strong support to push the price upward. Besides, the Kijun line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing above $900 to $950 support area, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days.