There are huge price fluctuations going on, in the crypto market recently. And this has shifted the bullish momentum of most digital coins to a bearish move. Ethereum has been struggling to move past strong resistance levels, and as the market becomes stagnant at the $1600 price point, there is a high chance for it to go bearish. If the bullish momentum is not resumed, the price of Ethereum could make new monthly lows and move towards $1500.
Ethereum gaining bearish momentum!
Ethereum is currently trading at $1614 and is struggling to go up. There are constant ups and downs, and it is showing bear signals. The RSI indicator shows that the market is getting controlled by bears, and there is a lot of selling. At the same time, the price of Ethereum is already below moving averages and at the lower boundary of the channel. Currently, things do not look that good for Ethereum, and only a big push will be able to resume the bullish momentum again. If and only if the price of Ethereum manages to climb above the $1700 mark, we can expect it to climb further.
On the other hand, things look more likely to go sideways as the price of Ethereum could fall below $1600. If it does, then moving to $1400 could be really quick. This is one of the major support levels for the coin, and if broke, the price could approach $1300 and even $1200. The reason that I said that things are more likely to go sideways was due to the signals from the RSI. If Ethereum is unable to maintain this price point or move up, things could get more challenging. The support levels could be the changing point of the momentum, and Ethereum could get bullish again.
Why this sudden change in momentum?
From the perspective of the entire market, we can see that all coins go up and down in unison. So, it is obvious that the downtrend of Bitcoin was also bringing down the price of Ethereum. After approaching the all-time high of 61k, the pullback that Bitcoin saw also resulted in a downtrend of Ethereum. But then, as the market recovered, so did the price of Ethereum. And again as Bitcoin was again unable to sustain at $57k after recovering from $53k it saw a sudden downtrend, which also pulled back the price of Ethereum.
As the Indian government seems unlikely to ban crypto and has already asked the exchanges to provide them with transaction details, the market could see an upside momentum. Even the RSI(14) also shows that the market could go up from here on.
Do you think that Ethereum could change its bearish momentum and go up again? And the price dip we are seeing right now is just a buying opportunity? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: Indian government takes a step towards regulating cryptocurrency.
