$2500 Fallout May Tumble ETH Price By 8%

A bearish reversal from the new descending trendline on May 4 indicates that the traders continue selling on minor pullbacks. The ongoing correction had recently breached the $2800 support and challenged the lower support level of $2500. Thus, if coin holders lose this support, the Ethereum(ETH) price may plunge to January bottom support of $2300

Key points: 

• The ETH traders are responding to the descending trendline
• The straight four days freefall in Ether registers a 13.75% fall
• The intraday trading volume in Ether is $19.4 Billion, indicating a 37% hike.

Source- Tradingview

Facing a bearish attack in the early days of April, the (Ethereum)ETH prices took a turnaround from the $3500 mark with an evening star pattern. Therefore, the bearish trend has decreased the market value of the Ether price by 28% in the last month. 

The deflation breaks below the $3000 mark and approaches the next psychological support of $2500. Furthermore, the increasing trend momentum evident by the rise in trading volume over the week, bolster the $2500 fallout.

Anyhow, the short-term correction continues under the influence of a resistance trendline, and the solid demand at $2500 holds a high possibility of a bullish reversal to the trendline.

If buyers fail to control the selling pressure, a downfall below the $2500 support zone will dump the ETH price to the next horizontal level at $2300. 

Under ideal bullish conditions, the reversal rally will hit the resistance trendline after surpassing the $2750 mark.

Technical Indicator

The fast-moving downtrend is facing constant resistance from the 20 DMA. Moreover, the recent bearish crossover of the 20 and 100 may promote a $2500 fallout. 

The expanding gap between the MACD and signal lines accentuates aggressive selling from the traders.

However, despite a steady downfall in price action, the daily-RSI following a sideways path indicates weakness in the bearish momentum. This bullish divergence hints at a reversal possibility in upcoming sessions. 

• Resistance levels: $2730 and $3000
• Support levels: $2500 and $2300

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.