This week, Ethereum has been on a downward trend and shows no signs of abating. There were no significant losses, but a red candle continued its streak on the fifth day of the seven-day span.
Traders who are still dealing with a lack of clarity about the future course of price movement are alarmed by this development. In spite of this, the asset has lost more than 11%. As a direct result of the current scenario, it has lost all of its previously accrued advantages.
Ethereum has retested the $1,000 support as a result of the current slump. Because of last week’s high demand, the price was unable to meet the target. The cryptocurrency was trading at $997 only a few hours before this article was written.
Traders’ fears have grown as of late due to the current status of the market. Several indicators, not only the fear and greed index, are leaning toward the negative.
For instance, the Relative Strength Index is one of them. The measure is nearing the oversold zone, with a reading of a little over 30. Oversold conditions might develop by the end of the week if we continue to see a decline.
The Moving Average Convergence Divergence (MACD) is another useful tool. It was on an ascent throughout the previous intraweek session and showed no response to the constant drop in price.
12-day MA looks to have run out of steam, as it has stalled. ETH’s decline from its most recent condition is causing it to fall as well.
A bearish divergence will occur if the 12-day and 26-day exponential moving averages intersect. As a result, there may be increased selling pressure in the near future. During this bearish run, more important levels may collapse.
There is still a lot of liquidation taking on in the derivatives market. More than $200 million has been sold in the previous 24 hours.