Ethereum sees massive retracement following its rebound on Monday. It sees further declines to levels it left during the session.
The apex altcoin started Tuesday at $2,883 but dipped following as trading sentiment became bearish. The fear and greed index plummeted as investors feared more declines. ETH retraced and hovered around $2,700. However, it dropped lower a few hours ago as selling pressure increased. It trades at $2,680 after rebounding a few minutes ago.
Nonetheless, the cryptocurrency is down by over 8% as it grapples with selling congestion. It failed to continue the bullish sentiment that spread across the market on Monday after it dipped to a low of $2,190.
The coin is seeing the end to the upticks as the world economy heats up again. Investors breathed a sigh of relief when the US announced it reached an agreement with Canada and Mexico and would postpone the tariffs Donald Trump issued in his executive orders. However, the trade war entered a new phase, with China announcing tariffs on US products.
On Tuesday, Beijing announced a 10% duty on imports from the US in response to the previous 10% tariff it had imposed on it. The positive fundamentals that fueled the previous day’s increase ended following this retaliation.
David Sacks Failed to Impress
Donald Trump’s Crypto Czar, David Sacks, had the most anticipated press conference a few hours ago. He reaffirmed the current administration’s commitment to seeing a Bitcoin reserve. He spoke about the possibility of further US stablecoin in the coming years.
However, trading actions following the announcement showed that investors were unimpressed with the conference. They believe he said nothing new as the campaigns outlined these promises. His statements failed to halt the downtrends.
Nonetheless, traders keep up the buying pressure amid the massive declines. Exchange reserves are decreasing, hitting a fresh seven-day low. Some holders are moving their assets of exchanges as transactions increased by almost 5%.
U.S. investors remained more bullish in the last 24 hours, displaying more substantial buying pressure than the previous intraday session. However, Asian traders remain bearish, displaying more substantial selling pressure as the Korea premium is negative.
How Low Will Ethereum Go?
Vital Support: $2,800, $3,000
Vital Resistance: $2,400, $2,200
The altcoin lost its 78% fib level a few minutes ago. The last time this happened, it dipped below $2,200. Nonetheless, this time may be different, as Ethereum is seeing significant buybacks and is edge closer to breaking above $2,700.
In the event of a further slip, it may rebound at $2,400, the 100% fib level. Previous price movement suggests a notable demand concentration around it, which may contribute to its strength. However, if it breaks, the asset may retrace to $2,200 before rebounding.
Nonetheless, a trend reversal may send the altcoin upwards. It will look to reclaim the 78% fib at $2,767. This will guarantee $2,800. Further increases will see the $3k barrier flip.
The relative strength index is at 30. Further increases in selling pressure will send it lower, making it oversold. An oversold article is due for a trend reversal. However, the moving average convergence divergence prints sell signals.
The 12-day exponential moving average continues downwards as the 26-day EMA follows. MACD’s histogram display longer bars as the bearish divergence deepens.
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