Ethereum Sports Bearish Signals As Crypto Market Shifts Back Into Fear
March 03 2022 - 5:00PM
NEWSBTC
Ethereum has mostly mirrored bitcoin’s run in the recent rally.
This has seen the digital asset break as high as $3,000 once again
for the year. This point which has proved elusive for the
cryptocurrency has continued to give it a hard time. In previous
times, Ethereum has had a had time staying above this level. Such
has been the case this time around as it fails to secure its spot
above e$3K. Ethereum On The Decline Like all other
cryptocurrencies, Ethereum is a highly volatile asset and as such
is subject to wild fluctuations in its price. For the last few
months, it has fluctuated but remained mostly around the $2,600 to
$ 2,800=0 level. With the recent rally, it was finally able to
break out of this trend and begin a whole new one, one which saw it
rise above the coveted $3K level. Related Reading | TA:
Ethereum Prints Bearish Pattern, Why It Could Correct To $2.8K
Nevertheless, this recovery would prove to be short-lived given
that ETH could not maintain this position. Meeting fierce
resistance from the bears at the $3,000 point, the digital asset
was unable to form any meaningful support above it. This meant that
the price crumbled below it but it would prove to be a continuous
downward trend given the current indicators. The fall below $3k saw
the digital asset trading below its 50-day moving average. Now,
this is an incredibly important point for cryptocurrencies in
general given their high volatility. Since buyers are unwilling to
purchase the digital asset at prices they did over the past few
weeks, it indicates that Ethereum is still a seller’s market. Thus,
it is expected that there will be a continuous downtrend as more
coins are dumped on the market. ETH falls below $3k | Source:
ETHUSD on TradingView.com This however does not spell bad news all
around though. A market like ETH’s can quickly switch up and turn
into a buyer’s market, especially when prices are as low as they
are right now. If this happens, then Ethereum could very well see
another 10% bounce that will cement its position above the $3k
resistance point. Market Sentiments Falls To Fear The Fear &
Greed Index had moved out of the fear territory back into a neutral
point at the start of the week but this new wave of positive
sentiment did not hold. The index has now moved back into fear at a
current score of 39 as at the time of this writing, showing that
despite recent rallies, investor sentiments are still more negative
than anything. Related Reading | Terra (LUNA) Outperforms
Popular Cryptos Ether, Dogecoin In The Past 24 Hours Ethereum and
the crypto market are directly affected by investor sentiment as
they show when investors are likely to put money in the market.
Currently, with the index in fear, it shows that investors are very
wary of putting money in the market. However, this does not
necessarily spell bad news for ETH. Market sentiments drop to fear
| Source: Alternative.me Usually, when most investors are fearful,
it can present a good buying opportunity. In the past, whales have
been known to take advantage of moments like these to fill their
bags. If so, then ETH can kickstart another rally. But only a large
absorption of current supply can start the digital asset on this
path. Featured image from CNBC, chart from TradingView.com
Terra (COIN:LUNAUSD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Terra (COIN:LUNAUSD)
Historical Stock Chart
From Apr 2023 to Apr 2024