Ethereum fails to hold the Support Level
The entire cryptocurrency market has been under pressure the last few weeks. Even though bitcoin has seen a bit of a recovery, Ethereum has not and remains under pressure. Ethereum trades under the symbol ETH/USD. Please refer to the below daily chart for today’s technical analysis.
Ethereum’s market failed to stay above a key technical support at $900. The market tested this area over the weekend and failed to break or close below this level. ETH/USD has now fallen below that support level to hit a low of $865. Ethereum briefly touched $821.10 during the day.
Looking at the charts, there is still some upside potential in this market. A bullish trend line is forming and we could see a challenge of the technical resistance level that lines up at $850. In likelihood, we could see this market range between the support at $835 and the upside barrier lining up at $850 before recoiling higher.
There is a key support level lining up at $830. This is a key support level and boundary for a bullish view. Looking at the stochastics for the ETH/USD market, the relative strength indicator (RSI) is under 50, which indicates oversold conditions in this market. However the short term moving averages are indicating bearish momentum for Ethereum.
Fundamentally, on the economic calendar, things are fairly quiet this week. However, today the headline consumer price index (CPI), for the United States, is due out. This reading is expected to contract a bit and it will be a bellwether as far of future rate hikes from the Federal Reserve Bank. The Federal Reserve is expected to raise rates at their March meeting. Weaker inflation could mean that the Federal Reserve will move more cautiously with interest rates causing weakness with the U.S. dollar.