The price of Ethereum rose above $1900 against the current volatility of the crypto market. However, the poverty crossover threatens to fall below this critical level.
Conclusion
- Ethereum price moved closer to the $1,900 support as liquidation and investors moved away from risk assets.
- A bearish SMA crossover was confirmed on the daily chart.
According to crypto.news, the price of Ethereum (ETH) briefly fell 12% to an intraday low of $1,930 on Monday as it clawed back some of its losses as it stabilized around $2,000 at press time.
Ethereum spent the past three sessions in a tight $1,900-$2,000 corridor as traders weighed geopolitical risks in the Middle East amid continued macroeconomic uncertainty.
Ethereum prices fell after Bitcoin fell to $65,000 in response to higher global oil prices amid fears of a possible blockade of the Strait of Hormuz amid rising tensions between the US and Iran.
When the price of Ethereum fell, it wiped out high-quality bets in the derivatives market. Data from CoinGlass shows that around $75 million worth of ETH futures has been liquidated over the past 24 hours, with the majority being long positions.
A jump in long liquidation can intensify selling pressure and accelerate bearish momentum, especially during periods of increased market volatility, as experienced over the past 24 hours.
Technical indicators seem to indicate that the bears may soon gain the upper hand. On the daily chart, the 20-day moving average for ETH price action confirmed a bearish crossover with the 50-day SMA. As long as these key moving indicators continue to move downward, the asset may struggle to find its footing.
Ethereum price also broke below the Supertrend line, which confirms that the sellers are currently in control. At the same time, the Chaikin money flow index showed a negative reading, indicating that capital is leaving assets.
Therefore, the price of Ethereum remains under high risk of falling below $1,900, which could retest the bears to lower near $1,800 on February 24.
Conversely, if the price bounces back from the 50-day SMA of $2,248, traders can consider this a positive change in the current market momentum.
Disclosure: This article does not provide investment advice. The content and materials on this page are for educational purposes only.
