Ethereum fails to avoid correction on market and reaches crucial support level
Most altcoins also entered a major correction after the first cryptocurrency crashed in the market, losing up to 20% of their value in a matter of hours. Unfortunately, Ethereum also followed the trend.
Reaching important support level
On Aug. 19, Ethereum started to rapidly move down, continuously breaking local support levels and then nose-diving below the $1,500 price level. Luckily, the 50-day moving average was there to support the movement of the second-biggest asset on the market.
Thanks to the support level, the decline of ETH stopped and entered a local consolidation channel. A downside break is a positive sign for the market, indicating a lack of selling pressure that will propel the asset further.
Another reason behind the unexpected stop could be tied to the weekend trading session known for its lack of trading volume. The real intentions of traders and investors will be shown Monday when the U.S. and European markets are open.
recovery capacity
To enter a recovery rally, Ethereum would need an immediate bounce back from the prices we are seeing now, which would only give a shock to the recent 15% drop before the price rises.
According to volume profiles, the market has not seen an increase in activity of traders and investors, meaning that the asset is following the performance of the market rather than being influenced by events around the Ethereum ecosystem.
As of press time, Ether is changing hands at $1,614 and showing a mild recovery signal with a 2.4% recovery over the past 24 hours. Ether is also up 5% from its local low on Aug. 18.
