In this article, we look at the recent developments surrounding Ethereum (ETH) and highlight key price levels that are critical for the future now.

Ethereum was able to break the resistance of $2,682 (2,542 euros) failed to break through, after which the price fell back to the 50-day EMA (Exponential Moving Average). This is an indicator that calculates the average of recent days, with recent days outweighing older ones, to give a better picture of the current market trend. Although ETH was heavily bought up at that point, Bitcoin's drop below key support levels caused ETH to be pulled down as well. Ethereum found support around the 800-day EMA and at the support level of $2,419 ($2,295). If Bitcoin loses the 200-day EMA, it will likely put further pressure on Ethereum as well.

If Ethereum can hold support around $2,437 (€2,311) over the next 4 hours and make a recovery (assuming Bitcoin also recovers), ETH should break through both the 200- and 50-EMA on the 4-hour chart. Failure to do so could be seen as a signal for a further decline. In that case, the next support for ETH lies around $2,296 (€2,176).

What do the indicators say?

The Relative Strength Index (RSI) is at 28 points, indicating a strong oversold situation and a possible recovery. The RSI is a technical indicator that measures whether an asset is overbought (oversold) or oversold (oversold), on a scale of 0 to 100. Values below 30 indicate that the market may have fallen too far and is ready for a recovery.

The Moving Average Convergence Divergence (MACD) had declining negative momentum over the past few days, but yesterday's drop keeps the MACD in negative territory. The MACD is an indicator that looks at the relationship between two moving averages and helps identify changes in the strength, direction and duration of a trend. In the current market situation, it is wise to wait until the market stabilizes and there are no more negative news items affecting the market.