Bitcoin and other major altcoins were showing some weakness on Monday, following a thinner trading period for the last three days. Bitcoin was struggling below $40,000, whereas Ethereum plunged below $3,000.
ETH declined below USD 2,950 and is now down almost 4% in a day and 8% in a week. The Ethereum (ETH) price plummeted below $3000 after the V-top correction rally. The continuous pullback was halted around this support level, which coincided with the 50 and 100 DMA lines, and diminishing volume activity hinted at a bullish reversal.
The altcoin’s projected comeback would push it back to $3600. On April 5th, the ETH rebound surge shifted from the $3600 level. As Bitcoin saw a rapid drop below the $45000 support, sellers put tremendous pressure on the price.
The ETH price fell by 16 percent during the correction rally, plunging it below the psychological support level of $3000. The coin price has been hovering above this level for the previous six days, despite the uncertainties in the crypto market.
At present, Ethereum’s price broke the $2,950 support and strengthened its bearish momentum. If selling pressure increases below the $3000 support, the March recovery rally would be shattered, and the coin would fall to $2750 support, then hit $2500 in the worst case.
The OBV slope indicator displays a greater pump than the price movement, indicating that the price is becoming increasingly bullish. A solid support region for purchasers is formed by the 50 and 100 DMAs linked with the $3000 mark. Furthermore, a bullish crossover between these DMAs attracts more buyers to the market. Thus, If there is an upside correction, the price might face resistance near the $3,050 level.
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A short-lived ETH rally!
Cred, a pseudonymous analyst, says he’s keeping a close eye on Ethereum, which he believes will rally in the coming days, in a new strategy session. He does warn, though, that the rise will most likely be short-lived.
“You might end up in a situation where next week both BTC and ETH rally, but those are rallies into cluster resistance… I don’t like those types of setups.”