The world’s leading alternative coin has had a rough ride over the past weeks. Recently, Ethereum managed to rally to $2,400 before bears dominated the market once more. While writing this, ETH had is weekly losses amounting to more than 10%. That comes as the selling pressure dictates the price changes. However, various significant factors in the crypto market suggested that the altcoin might suppress incoming plunges at the $2,050 defensive line.
At this publication, Ethereum trades at $2,103, following a 0.24% loss since the past 24 hours.
ETH 4-Hr Chart
Ethereum’s value dropped by 15% to $2,050 from $2,400 in two days. That was after the 50-SMA and 200-SMA switched to bearishness once more. The previous trading sessions cause lateral price movements. Also, bulls have kept the value of the asset inside the pattern. Bulls have to control the short-term losses over the $2,050 level to prevent any further losses.
Keep in mind that this support zone coincides with the up channels lower trend-line. Also, the 200-SMA bolsters the support. Notably, the Visible Range indicated a significant ETH interest at this particular price zone.
What’s next?
The Squeeze Momentum Indicator (SMI) shows a receding bearish momentum. The dark-red bars denote that. With that, the market remains with low volatility, indicating increased sideways moves before a massive trend surface. The histogram aims to move over the half-line as MACD had a bullish crossover. Also, the positive DI seems to cross over the negative DI. With such market developments, analysts will expect a bullish move.
Although the indicators show an anticipated uptrend, the 200-SMA ns 50-SMA hovered nearly the $2,240 zone and might overpower any near-term gains.
As usual, market players need to act with care when investing in digital coins. For now, the market seems to struggle with low volatility as the market lacks the correct sentiments. However, things might be smooth in the future.
ETH’s $2,050 defensive line might cushion the coin’s short-term plunges, showing possibilities of temporary surges. Although Ethereum traders might go long, for now, it could be better if they can wait for increased convinced cues before executing trades.
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