Following the bearish wave on Monday, the cryptocurrency market is in rabble . from $1,900 Ethereum dropped at $1,700 to seek support. Premised on the report banning digital assets in India, it was suspected that the decline in Ethereum was based on that.
Better than Bictoin, Ethereum has weathered down the losses despite the massive drop. Because Bictoin dropped to level around $54,000 from high above $60,000 and currently Ether is trading at $1, 740.
On the 4-hour chat, the immediate downside is protected by 200 Simple Moving Average (SMA) and also 100 simple moving average is at the down side to provide support. It is pertinent to mention that investors can expect ETH to drop to $1,400 if the two aforementioned anchors of 200 SMA and 100 SMA fails to hold.
When the downtrend is negative gradient, the Moving Average Convergence Divergence (MACD) validates same. Signifying the increase in selling pressure, the MACD line (blue) already crossed under the signal line. If the MACD dives into negative region, more loses will come into play.
Amid a rise in volume, the current resistance path is downwards and the only way to ensure the recovery of Ethereum is via higher support and if not the aforementioned, the $1,700 drop is quite conservative and with the current rising wedge pattern with $1, 300 target.