Ethereum has lost more than 30% of its value from the all-time high traded at $4,387. Initially, the correction was more like lock-step trading whereby short-term support levels prevented sharp losses. However, during the previous weekend session, the market instability saw Ethereum dive under $4,000 and tested support at $3,100.
A trend reversal occurred on Monday with Ether trading above $3,500, but the recovery was short-lived following another bearish jab in Wednesday’s Asian session. Ethereum dived back to $3,100 but this time extended the bearish leg under $3,000.
Ethereum hunts for formidable support
Ether is trading slightly above $2,900 at the time of writing. Losing the 200 Simple Moving Average Support (SMA) has drastically changed the short-term technical perspective. Therefore, all eyes are focused on Ether’s ability to hold $2,800.
ETH/USD four-hour chart
The various technical indicators like the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) have vivid bearish signals, as highlighted on the four-hour chart.
For instance, the MACD has expanded the gap beneath the mean line (0.00). Moreover, the MACD line (blue) increasing divergence below the signal line is a massive bearish signal.
At the same time, the RSI is in a sharp downward movement toward the overbought region. This means that the path with the minor hurdles is south. Ethereum’s breakdown under $3,000 would trigger massive sell orders. The increase in overhead pressure will leave tentative support levels at $2,800 and $2,500 vulnerable to losses.
Ethereum intraday levels
Spot rate: $2,950
Support: $2,800 and $2,500
Resistance: $3,200 and $3,600