Chart by TradingView
ETH had seen a difficult weekend so far, unable to move away from the critical support at $2.5K. The overall crypto market sentiment is slightly bearish after Bitcoin got sharply rejected below $40K.
Key Support levels: $2,560, $2,330
Key Resistance levels: $2,800, $3,000
Since ETH got rejected at the $3,000 resistance level, the price quickly dropped towards the key support at $2.5K. The latter was the daily low in the past three days – Friday, Saturday, and Sunday.
So far the key support level held well and buyers managed to step in and prevent a further drop. However, in case of a breakdown, we can expect ETH to quickly reach the next major support at $2.3K, which is February’s low.
Trading Volume: The volume almost disappeared over the weekend. ETH saw a massive decrease between Wednesday and Friday; however, the volume wasn’t significant.
RSI: The daily RSI made a lower high which is a bearish pattern. If the price continues to decline, the RSI will likely make a lower low as well, something that would place ETH in a clear bearish trend.
MACD: The daily MACD just did a bearish crossover today. This is bad news for bulls and may anticipate further losses in price in the coming week.
The bias for ETH is neutral, as long as the key support at $2,500 holds.
ETH is looking weak, and the price action on Monday will be decisive on how the coming week will be for the second-largest cryptocurrency. If ETH fails to hold at the key support, it can easily fall to $2,300 or even lower.
