Ethereum (ETH) price trades with modest gains bucking the previous five sessions’ downside momentum. Ether, the native coin of the Ethereum blockchain has been facing volatility owing to the ongoing Geopolitical tensions between Ukraine and Russia.
As of press time, the second-largest cryptocurrency is trading at $2,572.51, up 0.27% for the day. The 24-hour trading volume held at $20,751,574,496 with more than 60% gains. The rise in volume along with stable price indicates deferring upside momentum in the price.
Experts believed that Ethereum has been more volatile than bitcoin since 2018. The scalability issue has hit ETH hard the reason behind the increasing popularity of layer 2 challengers like Polygon reportedly more NFTs on its platform.
ETH holds near critical level
Ethereum’s (ETH) price has lost nearly 5% since the previous week. The current price action suggests ETH could move further south.
The descending trendline from the ATH made on November 10 at $4,867.81 acts as a strong upside barrier for ETH bulls. As there have been multiple attempts to breach the level but the bulls failed to do so.
Source: Trading View
Meanwhile, a resurgence in selling pressure is observed when ETH falls below the crucial 200-EMA (Exponential Moving Average) at $3,511.57. Since then price tested 2022 lows of $2,159. ETH rallied 45% to the swing highs of $3,284.75.
Now, the price has taken some reliable support near $2,600, the price could see a bounce back to test the bearish sloping line $3,200.
Alternatively, failure to hold the session’s low could see $2,150 followed by $1,970 level on the downside.
Technical Indicators:
RSI: The Daily Relative Strength Index (RSI) reads below 40 as it already pierced below the moving average.
MACD: The Moving Average Convergence Divergence (MACD) falls below the midline with receding bullish momentum suggesting the downside risk for the pair.
