On Friday, ETH sank below $1,000 for the first time in a week amid the intensifying global cryptocurrency sell-off that transpired over the past couple of days. Its price even dropped to as low as $758 at one point, but it managed to bounce back to around $898, as of 2:30PM PST.
Now the question is whether this occurrence is a just temporary phenomenon or a sustained nosedive that’ll continue to wipe billions of dollars off the cryptocurrency market.
To answer this, we need to take a look at a few technicals.
Over the short term, we will probably see ETH ride off its lows for the day with a chance to go back to at least $900. Activities throughout the day indicate a support level of $880, and a bullish signal was sent when the five-day and 20-day moving averages crossed.
If ETH does move up, it’ll likely test a resistance of $920, and the next hurdle could be at $960. For it to go back to $1,000, investors will need to look at the price actions and whether these resistance levels hold. But if the first resistance level does not come off, then there exists a genuine possibility that the $880 support level could break down, and further declines are entirely possible.
Using the MACD indicator, a bearish signal was relayed when the MACD line crossed over the signal line. Also, volume hasn’t really picked up as the day went by, which is a concern.
In summary, ETH investors should take note of the following:
- Major support level — $880
- Major resistance level — $920
- Next major resistance level — $960
- MACD indicator — entering bearish zone
- Moving averages — bullish signal sent
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