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Ethereum (ETH) Slides Towards 1,400 USD as the Crypto Market sees a Generally Decline.

March 25, 2021

Talking Points:

● ETH has hit a wall just above 1,700 USD, opening the way for potential losses below 1,600 USD.

● According to the moving average convergence divergence (MACD), the least resistance route is downwards.

ETH bulls target of 2,000 USD was halted just over 1,700 USD. Losses came into play when ETH falling below several vital support levels, such as 1,650 USD and 1,600 USD. At the time of publishing, ETH is trading at 1,571 USD amidst a bearish drive for further decline.

The whole crypto market is on a decline, led by Bitcoin’s fall to 52,000 USD. If ETH is unable to find support at 1,500 USD, we could potentially see another drop towards 1,400 USD or the descending channel’s lower support line as highlighted on the 4-hour chart.

Meanwhile, ETH’s downswing has been supported by the MACD. This indicator show positions on when to buy the lows and sell the highs. When the MACD line (blue) crosses below the signal line, this would indicate traders to sell.

On the flip side, it is an indicator to buy when the MACD line crosses over the signal line. The indicator also shows general market trends. However, currently, the MACD is suggesting that the route of least resistance is downwards.

ETH/USD 4-Hour Chart:

The bearish viewpoint has also been supported by a death cross pattern on the 4-hour chart. This pattern occurs when a short term moving average crosses under a long term moving average. For example, the 50-day Simple Moving Average (SMA) recently crossed below the 100-day SMA, suggesting that the trend has now turned bearish.

ETH could restart the upward trend if it is able to hold above 1,600 USD. This would give investors confidence that a recovery is possible and could lead to potential further gains towards 1,700 USD as buyers rejoin the market.

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