Can the 50 Monthly SMA Hold As Support for Ethereum (ETH)?

Ethereum [ETH] has suffered a sizable loss this week as the latest FTX-related events wreaked havoc on the crypto market, sending them crashing lower. ETH/USD price fell below $1,200 the lowest level since July. Although, back then the 50 SM (yellow) held the crash on the monthly chart and turned into support.

Ethereum Weekly Chart – The 50 SMA Waiting Below

The 20 SMA has turned into resistance 

That moving average was the low back then, below $1,000 and we saw a bounce off of it in July and August, sending ETH/USD above $2,000 for a while. But, the 20 monthly SMA (gray) turned into resistance stopping the bounce and the price reversed back down. In the last two months the price was trading in a range, but since last Friday sellers have returned after the acquisition of FTX exchange from Binance.

Ethereum has dropped by as much as 30% since Friday, but the price action has been part of the ongoing market crash. Although now many retail traders are wondering whether this was a good time and place to buy back Ethereum or to wait until the selling pressure comes to an end.

Ethereum Daily Chart – The 20 SMA Rejected the Price

Stochastic is oversold now

On the daily chart we see that the 200 SMA (purple) turned into resistance, stopping the bullish momentum last week and the reversal eventually came. But, the stochastic indicator is oversold now on this timeframe and today we are witnessing some buying pressure, as buyers [ush the price higher after placing a bottom at around $1,080.

Ethereum ETH Token Live Chart

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

Related Articles

Ethereum Surges to $2,400 Following Pectra Upgrade and Trade Deal News

2 hours ago

Save

Ethereum Price Prediction Soars—$265M Liquidated, ETH Hits $2,331

5 hours ago

Save

Ethereum breaks $2.2K Spell, shows Buyers Exhaustion

11 hours ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments