Ethereum dipped below $3,000 today.
The 50-week moving average now holds as stable support.
ETH needs to breach $3,300 to be able to rebound swiftly.
Share this article
Ethereum has started the week in sluggish mode after its price suffered another 7% dip. While many market participants are displaying signs of fear, the number two crypto appears to have found vital support.
Ethereum Finds Stable Support
Ethereum broke below $3,000 earlier today as the cryptocurrency market continues to bleed. The global crypto market cap shed more than $280 billion following the latest dip.
ETH is 36.8% short of its all-time high price of $4,870 recorded in November 2021. It’s lost about 17.4% of its value since the beginning of 2022.
Despite the significant losses it has incurred over the last few weeks, ETH appears to have found stable support.
The 50-week moving average on the weekly chart is holding strong after facing its first test since May 2021. Ethereum has successfully maintained this critical support level throughout previous bull cycles, which may hint that a rebound is on the horizon.
The Fibonacci retracement indicator, measured from the June 2021 low of $1,700 to the November 2021 all-time high of $4,870, suggests that Ethereum must regain $3,300 as support to attract buyers. Moving past this resistance level could generate enough bullish momentum to push ETH toward $3,700 or $4,120.
If Ethereum fails to gain the strength it needs to rebound, a breach of the 50-week moving average could be imminent. Failing to hold the support level could generate panic among investors, increasing the potential for another sell-off. ETH could then crash toward the 78.6% Fibonacci retracement level or the 100-week moving average. These key areas of interest sit at $2,400 and $1,700 respectively.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Penguins Are Huddling on Ethereum Amid Cries of Scam
Pudgy Penguins community members are proposing a fork of the NFT project amid accusations that its founders have siphoned funds from its treasury. Pudgy Penguins NFT Collection Embroiled In Controversy…
Web3 – What it is, What it Means, and How We’ll Transition
We are at the dawn of a new era of the internet. Bit by bit, this new digital world, and all that it enables, will slowly become a part of…
Vitalik Buterin Proposes “Multidimensional EIP-1559” for E…
Vitalik Buterin has published a new piece addressing Ethereum gas fee markets. Specifically, he discussed launching a new “multidimensional” EIP-1559 update. Vitaik Buterin Makes New Ethereum Proposal Vitalik Buterin has…
Ethereum Layer 2 Arbitrum One Hit By Another Outage
Arbitrum suffered from similar issues back in September—but they didn’t take several hours to resolve. Arbitrum One Goes Down Arbitrum One, Ethereum’s leading Layer 2 scaling solution, is down. The…