ETH Plummets 5%, Will $1.8K Hold or Is Deeper Correction Inbound?

• Ethereum’s price has recently arrived at the crucial support level of the 50-day moving average.
• The price is currently going through a tight price range between the 50-day MA and the significant resistance level of $2K.
• If it falls below the 50-day MA, the 100-day moving average at $1.7K will become the primary support level.

Ethereum Price Analysis

Ethereum’s price has recently arrived at a critical support level of its 50-day moving average after experiencing a period of consolidation and correction. At present, ETH is confined within a narrow dynamic range between this 50-day MA, which is currently at $1847, and an important resistance region of $2K.

50-Day Moving Average Support Level

The previous formation of a higher-high pattern before the sharp decline led to substantial volatility in lower timeframes and a striking shadow in the daily chart. As such, if the price manages to breach past this resistance area near $2K as well as its prior swing high near $2.1K, it could potentially trigger an extended rally upwards. On the other hand, if it drops beneath this 50-day MA support level then Ethereum’s next primary support area would be its 100-day moving average at approximately $1.7K.

4 Hour Chart Analysis

In terms of Ethereum’s 4 hour chart, after being rejected by an ascending channel’s upper threshold, it caused a downward trend towards that channel’s midline trendline where buying pressure remains strong despite huge fluctuations when reaching said line. If however, ETH fails to hold above this midline trendline then there is potential for further downward movement towards that vital 100 day MA point mentioned earlier as well as additional bearish movements beyond that point too should it fail to provide enough support for Etheruem’s price action once again on its next retest attempt..

Conclusion

Overall Ethereum remains under immense pressure from both sides with buyers attempting to keep prices afloat around these key support levels while sellers remain relentless in their attempts to push prices further down below said levels in order to capitalize off any further declines in value due to increasing bearish sentiment in recent days/weeks throughout cryptocurrency markets overall..

Key Takeaways

• Ethereum’s current price range sits between its 50 day MA ($1847) and significant resistance region of $2000 • A break out above this resistance region ($2000) could lead to an extended rally • If broken below its 50 day MA ($1847), primary support lies with its 100 day MA ($1700).