Ethereum inconclusive over the weekend drops to a new low
- On Friday, Ethereum unexpectedly pulled back to the $2555 level.
Ethereum chart analysis
On Friday, Ethereum unexpectedly pulled back to the $2555 level. The previous resistance at $2724 proved very strong at the EMA 200 moving average, and we failed to move above it. From this level of support, prices managed to initiate a bullish consolidation on Saturday. On the downside, we got support from the EMA 50 moving average.
On Sunday, Ethereum climbed to $2720, crossing again above the EMA 200 moving average. As last time, we are losing bullish momentum and starting a bearish consolidation up to the $2542 level. On Monday, at the beginning of the day, the price fell to a new low of $2511. With that, we formed a new low compared to Friday’s, which strengthened the bearish pressure. Fortunately, this time, we also get new support and grow to the $2580 level.
Ethereum’s retracement below the EMA 200 puts pressure on the price again
A mild bullish consolidation increases optimism that Ethereum could snap and initiate a bullish recovery. Potential higher targets are $2700 and $2725 levels. It is important for us to move above EMA 200 and stabilize above it so that we can strengthen our bullish pretensions.
For a bearish option, it is imperative that we see a negative consolidation of the Ethereum price below $2500. This step will move us to the daily low, which will further strengthen the current bearish momentum. It remains only to see a further retreat and the formation of a new weekly low. Potential lower targets are $2475 and $2450 levels. For now, we are opting for a bullish option as long as we manage to stay above the $2550 level. This would be an excellent position to form a new higher low.
