Ethereum (ETH) Price Sanks Near July Lows, Bleeds Near $2,300

The week begins in red and there is no stoppage for the sellers till now. Ethereum (ETH) trades at $2,337.04, down 9% on Saturday. The previous day witnessed a single largest one-day percentage fall since June 21.

The downside move is echoed by Ethereum’s market cap, which is being pushed down to $291.21B of the total cryptocurrency market cap. Furthermore, the volume was heightened by 33.0% to $31.08B

Ehterum lost more than 26% in this week

At the current market price, Ethereum has retraced near 50.01% from its ATH of $4,864.06 made on November 10.

Talking to the technical aspect, the Ethereum (ETH) price has broken the important moving average crossover (50/100/200 DMA) on January 7. Again buyers tested the highs on January 12 near $3,420. However, the next day’s red candle erased all the previous gains followed by three “Doji “candlesticks. The price fell like a pack of cards since then.

This Friday’s momentum was a scary one as ETH crashed below the long-term horizontal support line near $2990. The daily relative strength index (RSI) slips below 20 and trades in the oversold zone. While the MACD reads below the midline with bearish crossover.

The technical setup points at the continuation of the downside momentum. A weekly close below the $2,300 level would accelerate the selling toward the $2,000 horizontal support line.

On the flip side, the oversold momentum oscillator suggests some discount buying opportunities. In technical terms, it is termed as ‘dead cat bounce’, where the price could bounce back to $2,800.