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

Bitcoin price was below $40k and was down 12% in the past week. The capitalization of the global cryptocurrency market stood at $1.96 trillion after falling 0.2% in the past 24 hours.

Ethereum has seen a wave of selling over the past week, but over the past 24 hours the crypto has been trying to recover from the grip of the sellers, however, the buying pressure has yet to resurfaced in the market. Recently, the Ethereum developers released their “Mainnet Shadow Fork”.

Ethereum Price Analysis: Four-Hour Chart

Ethereum price is $3028. Image Source: ETH/USD on TradingView

Ethereum price was $3028.86 and the crypto has been hovering around the aforementioned price level for the past 48 hours. Immediate resistance for the crypto lay at $3085.60 after the crypto was repeatedly rejected from this level over the past few days.

A continued rejection of the resistance mark may push 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 aim for the resistance mark at $3391.95 and then $3609.61. Trading volume was in the red indicating less buyers at the time of writing.

Technical analysis

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

Ethereum has been hovering in oversold territory for the past 72 hours, at the time of writing the crypto has struggled to show considerable buying pressure. On the Relative Strength Index, the crypto was seen below the 50 mark as Ethereum was oversold and undervalued at the time of writing. Over the past week, the RSI has remained mostly below the middle line.

On the 20-SMA, ETH was seen placed below the 20-SMA line and this matched the RSI reading. ETH price momentum was led by sellers according to the aforementioned indicator.

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

Since ETH started to sell off about a week ago, the crypto has started to show bearish price action and bearish momentum. At press time, ETH continued to show bearish price action and the crypto saw the bulls gain the upper hand for a very brief period of time that referred to a few hours.

The MACD is still negative as the indicator has gone below the zero mark. This signals the strength of the bears. It is still too early to tell whether in the next trading sessions ETH will resume its price momentum.

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

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