Ethereum at $3028, where is the next critical support level for ETH?

Ethereum was priced at $3030 and the altcoin king recorded a sharp 11% drop in the past week. Major cryptocurrencies are all in a downtrend, having crossed their immediate support levels.

Bitcoin was priced below $40k and was down 12% in the past week. The global cryptocurrency market cap was $1.96 trillion after falling 0.2% in the past 24 hours.

Ethereum has witnessed a sell-off in the past week, but for the past 24 hours, the coin has been trying to recover from sellers’ grip, but buying pressure has yet to emerge in the market. Recently, Ethereum developers have gone live with their Mainnet Shadow Fork.

Ethereum Price Analysis: Four Hour Chart

Ethereum costs $3028. Image source: ETH/USD on TradingView

Ethereum was priced at $3028.86 and the coin has been hovering around the above price level for the past 48 hours. Immediate resistance for the coin was $3085.60 after the coin has been knocked off that level several times in recent days.

Continued rejection of the resistance sign could lead Ethereum to trade near the USD 2839.12 support level.

A drop to that level would mean a 6.44% drop. In the event that the bulls resurface, the coin would target the resistance mark at $3391.95 and then $3609.61. Trading volume was in the red, indicating fewer buyers at the time of writing.

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Technical analysis

Etherum showed declining purchasing power. Image source: ETH/USD on TradingView

Ethereum has been floating in oversold territory for the past 72 hours, at the time of writing, the coin struggled to witness significant buying pressure. On the Relative Strength Index, the coin was seen below the 50 mark as Ethereum was oversold and undervalued at the time of printing. Over the past week, the RSI has largely remained below the half-line.

On the 20-SMA, ETH was seen below the 20-SMA line and this matched the value on the RSI. The price momentum of ETH was driven by sellers as per the above indicator.

Ethereum showed bearish momentum on the four-hour chart. Image source: ETH/USD on TradingView

Ever since ETH went into a sell-off about a week ago, the coin has started showing bearish price action as it flashed bearish momentum. At press time, ETH continued to exhibit bearish price action and the coin had witnessed the bulls taking over for a very short period of time, which was a matter of hours.

MACD was still negative at this point as the indicator was below zero. This indicates the strength of the bears. It is quite early to say whether ETH would pick up price momentum during the coming trading sessions.

MACD has shown a bullish crossover, with small green histograms resurfacing, but continued price moves in the same direction will cause the indicator to stay below the half-line.

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