The previous five days saw Ethereum plunging to its long-term POC (Point of Control) to secure support around the 200 Exponential Moving Average at $3,100. For now, the leading alt might encounter a brief challenge before stretching its gradual upticks. Any fall beneath the POC would mean a hassle for Ether bulls as sellers target price levels beneath the 55 Exponential Moving Average. While publishing this article, Ethereum traded near $3,246.30.
Ether Daily Chart
Ethereum sustained massive declines on high volumes since the king alt lost the long-term Point of Control at $3,100. Therefore, Ethereum poked 6-month lows on January 24. ETH picked up from its 13-month trend-line support after respecting its historical tendencies. Bulls triggered a massive rally that overpowered the Point of Control after testing the foothold many times. As $3,500 stood steady, the climbing wedge witnessed a downward break (expected) that translated to a 9.1% fall within five days.
For now, buyers should ensure the support at $3,100 for continued recoveries despite the bullishness of EMA Ribbons. More setbacks might trigger reversals from the POC as ETH sees a clash between sellers and buyers around that region.
Reasoning
The Relative Strength index corresponded with Ether price and witnessed a similar climbing wedge breakdown. Meanwhile, the midline support remains sturdy as bulls deny sellers a free hand.
The on-balance volume formed lower highs over the past three days as the alt saw a brief resurgence. That reflected a somewhat feeble bearish divergence between the two. Therefore, market players can expect a possible 55EMA retest by ETH.
The downside Aroon indicator stayed flat over the past couple of days, meaning a revival over the upcoming days might favor sellers.
Final Thought
Short-term retracements appeared plausible in ETH, according to readings on the technical indicators. Meanwhile, the Point of Control standing steady would see bulls extending the gradual recovery.
Nevertheless, market participants should watch BTC’s price actions as Ethereum shares a staggering 96% monthly correlation with the dominant crypto. While writing this content, Bitcoin traded near $42,333.56, losing 0.79% over the past 24hrs.
