Yet again the cryptocurrencies have continued its steep correction with the global cryptocurrency market waving a red flag as the world’s first crypto, Bitcoin is trading below $40,000 level.
With this Ethereum has also lost more than 2% in just 24hrs bringing the ETH price below $3,000 range.
At the press time, Ethereum price is trading at $2,870 with a downswing of 2.52% over the last 24hrs.
Ethereum Death Cross !
After the Ethereum price traded below the 55-day Simple Moving Average (SMA) near $2,986, Ethereum price entered the danger zone.
This looks like a calm before the storm. In the past few days, various events like FED speakers’ comments, earrings, polls on French elections, Ukrainian war news among many others have affected the global market, which was supposed to be filtered and priced.
Hence, the second largest cryptocurrency by market cap, has started the week on a decent note that includes a minor disturbance and more room for technical trading.
According to the 55-day SMA, Ethereum is nearing the 200-day SMA which is around $3,500 range.
Though the Ethereum price has a few more numbers to reach the $3,500 range, a balanced price rally might get the 55-day closer to the 200-day SMA and this could possibly happen in the first week of May and this is where the most worried death cross can be undone and pave the way for uptrend. For Ethereum price this move would result in a $3,687 price rally with the monthly R1.
If bulls fail to surpass $3,000 and bears manage to capture the price rally defending Ethereum’s price surge, this would bring Ethereum under a massive pressure. This amount of pressure will pull the price action to drop at $2,695.79.
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Source: https://coinpedia.org/ethereum/ethereum-death-cross-heres-when-it-will-occur/