The cryptocurrency is down 1.93% after making more than 10% in only three trading sessions. The pair could not reach a second support level at $2,742 at our 38.2% Fibonacci retracement, and it could go back to the $2,355 resistance level on a downtrend.
Many cryptocurrencies had a good weekend but have not been able to hold on to those gains for long. Our parabolic SAR suggests that the downtrend will continue.
The Bollinger bands are closing, but they are still wide enough to have mild volatility in the upcoming trading sessions; this also indicates that there could be a change in the short-term trend, strengthening the short signals at this point.
Price trades below the short-and long-term moving averages, which tell us that a downtrend should continue for the medium term. The relative strength index is currently at 46%, which will allow the pair to move in either direction with a slight inclination for a downtrend.
Ethereum is finding support at $2,641; a lot will depend on whether or not this level can be broken in the remainder of the session.
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