Several horizontal levels and DMAs have been knocked out by the sustained selling in the Ethereum(ETH) market. The altcoin recently broke above $2800, indicating that the sellers are expecting another leg down. Furthermore, under the impact of the downward trendline, the sellers could extend the correction rally to $2500.
With an evening star candle, the Ethereum (ETH) price dropped down from the $3600 resistance on April 5th. With Bitcoin losing support at $40000, altcoins followed suit and demonstrated a V-top reversal.
Sustained selling has broken through three key support levels: $3200, $3000, and, most recently, $2800. Today, however, the ETH price is up 1.24 percent and attempting to retest the previously shattered resistance.
If the selling momentum continues, the price of ETH will fall 11.6 percent to the $2500 support level. Furthermore, the technical chart indicates a powerful declining trendline that acts as persistent resistance to the coin’s price.
This sinking trendline aids traders in selling rallies, potentially bolstering a drop to $2500.
A bullish breakout from the resistance trendline, on the other hand, might signal the end of this modest correction and the start of a new recovery rally. The possible rise might push the price of Ethereum to $3000.
Indicator of Technical Excellence
The 20 DMA, which is aligned with the descending trendline, provides dynamic resistance in the current correction. Furthermore, the coin chart suggests a possible crossover between the 20 and 100 DMA, which would encourage greater selling.
MACD Indicator: The downsloping fast and slow lines with a reasonable spacing between them emphasizes traders’ continued selling.