Last week, Ethereum began trading at $ 2,110 within the support area. Similar to bitcoin, Ethereum price surged to an all-time high at $ 2,545. A sudden drop followed this as the price fell to $ 1950. As a result of the decline, the market bears broke through the short-term trend line and the support area.
The second-largest cryptocurrency Ethereum is still in an uptrend in the long term, but price corrections are also expected this week.
250MA (green); 50MA (sine); 21MA (orange). When using the Moving Averages strategy, all the lines must be in correlation with one another. Moving Averages crossovers are a great way to detect changing trends and understanding which way the price might change.
Example: A strong bull market (bullish) trend is when the price trades above 250MA. Also, 50MA and 21MA lines are above 250MA. Also, 21MA must be higher than 50MA.
Corrections of Ethereum price are expected this week. In all likelihood, market bears are trying to push the price down. The mid-term trend line and short-term support area are especially critical. If the bears break through it, there is a potential that the price will fall again to the $ 1950 area.
This week, the potential for double divergence in RSI can be expected, especially if it happens in the area of short-term support and near the mid-term trend line. This would once again be a strong indication in favor of bulls.
Disclaimer: This article is for informational purposes only and is not intended as an investment recommendation. Change is not responsible for decisions made based on this information. The risks associated with all investments and all investment decisions are your own responsibility. The past and future performance of the asset class and the above financial ratios should not be considered a promise or indicator of the future.