The price of Ethereum (ETH) fell for the second consecutive day on Thursday. The price of ETH manages to maintain the 50-day Simple Moving Average (SMA) at $3,060. Investors need persuasion to jump to $3,200 just to keep the recent uptrend intact.
Ethereum (ETH) price is trading slightly lower on Thursday. ETH gains crucial support near the 50-day SMA. The price is shooting up 48% from the January lows of $2,159.0.
In the recent update, Twitter, the social media platform allowed a slew of new payment services for the existing tipping options, which now include Ether (ETH) apart from Bitcoin payment.
In addition, Morgan Stanley Wealth Management noted in its note that Ether, the original currency of the Ethereum blockchain, carries greater concentration risk as most of the currency is held by a small number of accounts. High transaction costs and volatility are another problem area of the blockchain.
Etherum faces downside risk on the daily chart
On the daily chart, Ethereum (ETH) price is up nearly 50% from January lows, forming swing highs at $3,284.75 on February 10. However, investors are losing patience and are following a lower price as a healthy retracement near $2,800. This also coincides with the breaking of the crucial 50-day Simple Moving Average (SMA).
Source: Trade View
If the selling pressure is intensified now instead of a simple retracement, the price could fall to the $2,500 level.
Next, ETH will wipe out the USD 2,150 lows last seen in July.
On the downside, if the price is able to maintain the session low, it could bounce back to the recent $3,200 highs.
Further upside could be found at 12% upside near the 200-day SMA at $3,600.
Technical indicators:
RSI: The Daily Relative Strength Index (RSI) is at 51 below the average line, indicating that the bulls are concerned.
MACD: The moving average convergence divergence (MACD) is holding above the midline with a neutral stance.
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The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
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This post Ethereum (ETH) Price Faces Downside Risk on Daily Chart; Will the price drop below $2800?
was published first on https://coingape.com/markets/101076-2/
