Ethereum at $ 3028, where is the next critical support level for ETH?

The price of bitcoin was below $ 40,000 and has dropped 12% in the past week. Global cryptocurrency market capitalization stood at $ 1.96 trillion after dropping 0.2% in the past 24 hours.

Ethereum has seen a wave of selling over the past week, but in the past 24 hours, crypto has been trying to recover from the grip of sellers, however, the buying pressure has not yet re-emerged in the market. Recently, Ethereum developers released their “Mainnet Shadow Fork”.

Ethereum Price Analysis: Four Hour Chart

The price of Ethereum is $ 3028. Image source: ETH / USD on TradingView

Ethereum’s price was $ 3028.86 and the cryptocurrency has hovered around the aforementioned price level for the past 48 hours. Immediate resistance for the cryptocurrency settled at $ 3085.60 after the crypto was repeatedly rejected from this level in the past few days.

A continued rejection of the resistance sign could cause Ethereum to trade near the $ 2839.12 support level.

A drop to this level would mean a drop of 6.44%. If the bulls resurface, the crypto will point to the resistance mark at $ 3391.95 and then $ 3609.61. Trading volume was in the red, indicating fewer buyers at the time of writing.

Technical analysis

Ethereum showed declining buying strength. Image source: ETH / USD on TradingView

Ethereum has remained in oversold territory for the past 72 hours, as of this writing the crypto has struggled to show significant buying pressure. In the relative strength index, the cryptocurrency was seen below the 50 mark as Ethereum was oversold and undervalued at the time of writing. Over the past week, the RSI has mostly remained below the midline.

On the 20-SMA, ETH was seen positioned below the 20-SMA line and this matched the RSI reading. The momentum in the price of ETH was driven by sellers according to the above indicator.

Ethereum showed bearish momentum on the four-hour chart. Image source: ETH / USD on TradingView

Since ETH started selling about a week ago, crypto has started to show bearish price action and bearish momentum. As of press time, ETH continued to show bearish price action and crypto saw bulls take over for a very short period of time referring to a few hours.

The MACD is still negative as the indicator dropped below zero. This signals the strength of the bears. It is still too early to say whether ETH will pick up its price momentum in the next trading sessions.

The MACD has shown a bullish crossover, with tiny green histograms resurfacing, however, the continued price movement in the same direction will cause the indicator to stay below the half line.

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