Yahoo Finance Ethereum Retreats As Crypto Markets Remain Under Pressure
Ethereum Continues To Move Lower
Ethereum is testing the support at the 50 EMA at $4,085 while other cryptocurrencies remain under pressure.
Crypto markets faced a serious sell-off over the weekend. This sell-off was led by Bitcoin, which gained strong downside momentum after the successful test of the support at $53,600 and touched lows near $42,300. Currently, Bitcoin is trying to settle below the support at $48,000. In case this attempt is successful, Bitcoin will move towards the next support level at $47,000 which will be bearish for crypto markets.
Other cryptocurrencies are also moving lower. Dogecoin is trying to settle below the important support level at $0.1650 while Shiba Inu is moving towards the support at $0.000033. Solana is trying to get to the test of the support level near $178. XRP is heading towards the $0.75 level.
Demand for riskier assets decreased amid worries about Fed’s next moves and the spread of the new variant of coronavirus. If global markets remain nervous, Ethereum and other cryptocurrencies will have a good chance to gain additional downside momentum in the upcoming trading sessions.
Technical Analysis
Ethereum managed to settle below the support at $4,200 and is trying to settle below the next support level which is located at the 50 EMA at $4,085.
In case Ethereum settles below the 50 EMA, it will gain additional downside momentum and move towards the support level near $3,900. A successful test of this level will open the way to the test of the support at $3,715.
On the upside, Ethereum needs to stay above the support at the 50 EMA to have a chance to gain upside momentum in the near term. The next resistance level for Ethereum is located at $4,200.
In case Ethereum manages to settle back above $4,200, it will move towards the resistance at the 20 EMA at $4,335. A move above the 20 EMA will open the way to the test of the resistance at $4,535.
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This article was originally posted on FX Empire
