Ethereum Price Tumbled at Support Level When Bitcoin is in Correction Mode

• Ethereum price dropped almost 8% after breaking the support trendline.
• The RSI indicator is recovering from the oversold zone on the 4-hour chart.
• The price of the ETH/BTC pair is looking bearish by 3.28% at 0.07064 satoshis.

In December, the bitcoin market is buzzing with negative energy. In the midst of a crypto-market downturn, the price of the second biggest digital asset, Ethereum (ETH), is now trading 7.5% beneath $1,200. The current price collapse has reversed all of ETH’s gains over the last week.

The price of Ethereum (ETH) has dropped substantially in the last two days after it breached a support trendline. Prior to last week, buyers controlled ETH’s directional trend above an ascending trendline, but a recent fall could spell disaster for investors.

At the time of writing, Ethereum price is trading at $1181 against USDT. The most recent price decline was to a weekly low of $1155 last night. Later, the buyers tried to ease the selling pressure to some extent, as a result of which ETH is up 1.3% today. Going forward, the price of the ETH/BTC pair is looking bearish by 3.28% at 0.07064 satoshis.

Trading volume increased by 89% to $10.1 billion in the last 24 hours. Thus, speculators witnessed an extremely volatile trading session last night, and the trading volume amid increasing selling could influence sellers to move lower. Conversely, with the RSI indicator recovering from the oversold zone on the 4-hours chart, buyers can consider this a short-term recovery.

In terms of the daily price scale, the RSI indicator has moved below the semi-line (50 points) and is now standing at 41 points. While the MFI indicator takes support at the halfway line after reversing from higher zones. Moreover, the MACD is still near the neutral zone, but the histogram is showing a lower low.

Conclusion

The crypto market follows sell orders due to bitcoin correction. Ethereum seems weak against BTC as buyers failed to sustain ETH price above the support trendline last night. As of now, the bulls should manage the $1150 support level to avoid further downside in the price.

Also read: Santa Rally Traps Swing Traders as Ethereum Faces Price Correction Phase

Technical Levels

Support level – $1200 and $1100

Resistance level – $1300 and $1500

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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