Ethereum (ETH) Bears Contemplate a Plunge towards $2,450

Briefly

  • Ethereum price accumulates a downswing pressure as the token clings to the support at 200-SMA.
  • RSI stays flat under the midline, supporting selling activities.
  • If ETH loses the 200-SMA, the token might plunge to explore $2,450.

Ethereum, the world’s second-dominant crypto, trades under pressure for two consecutive days as it consolidates the steep losses recorded on Friday. Ethereum suffered the recent crackdown by China, cracking its 2-day rebound from its monthly low at $2,651.

On Friday, the Chinese central bank, PBOC, stated that all digital coins activities are illegal. With that, the bank declared a ban that had tokens losing more than $400 million within one day. ETH lost nearly $420 during the actions before rising towards $2,931.

While publishing this article, ETH/USD trades near $2,900 after bouncing off from $2,800, its daily low.

ETH Defends 200-SMA

ETH’s twelve-hour price chart indicates the alt’s price hovering inside a narrow range, closed by daily troughs. That is because the token struggles with losses at the moment. After the two-day price volatility, ETH’s price keeps the range. That results from the bearish 21-SMA at $3,183 capping upsurges.

Keep in mind that the 21 Simple Moving Average broke the 100 Simple Moving Average from the top. That confirmed a bearish cross on Thursday. If the coin breaches the 200 SMA, Ethereum will test the horizontal support near $2,450. After that, sellers might eye $2,400 in the upcoming trading sessions.

With uptrends, ETH will encounter an initial resistance at the 21 Simple Moving Average. Above this level, the altcoin will test the horizontal 100 Simple Moving Average at $3,305. Such developments will require massive bullish momentum.

For now, the overall market negativity seems to weigh on the altcoin market. If the market sustains the current bloodbath, Ethereum might plunge to the targeted levels. Meanwhile, technicals keep sellers cheerful.

To reverse its conditions, Ethereum might have to continue clinging on the support at 200-SMA. That way, it can encourage bullish activities to support its upsurge. However, broader market support and upside development are necessary to catalyze upsurges.

Do you think that Ethereum has what it takes to prevent the plummets towards $2,450? We are ready for your views.