Ethereum cryptocurrency is reeling under selling pressure after the sudden breaking of the price movement, which was trading with a higher enthusiasm. The confusion created by unpredicted price movement has created a negative impact on its price action.
ETH is still the second-ranking cryptocurrency with a market cap of above $400 billion. The fundamentals are strong but movement in Bitcoin affects every other altcoin in the market. For now, the key moving averages should be considered as important fail-safe levels.
Ethereum Price Analysis
After hitting a new high of $4000, ETH has undergone profit booking. The break in the uptrend rally has created uncertainty in the price movement. With reducing buying sentiment, holders would be in a mood to book profits.
Ethereum has fallen to more than 12% in a day that too in a matter of seconds. This price action was unwarranted of anything else than a major pre-planned profit booking. We are in a positive phase of the market where the consequent moving average of 200 days and current trading value is 40% apart. This indicates a positive element on Ethereum price action, but that too is not sufficient to maintain a positive stance.
RSI has come down to a neutral level of 51 with an increasing negative volume. At present, Ethereum has strong support at psychological levels of $3000, followed by 50, 100, and 200 Days moving average. The current consolidation level is reflected even on the hourly charts and warrants caution before reinvesting at these levels.