Ethereum Survived One of the Worst Weeks in Its History and Is Now Looking for a Reversal Opportunity
According to a Bloomberg article, the second largest cryptocurrency in the market has found the foundation for a reversal. Ether fell to $880, causing massive liquidations in the market, which put even more pressure on the asset’s performance.
On June 19, Ether successfully rose to $1,279 on Sunday and then returned to $1,200, which remains a major support area for ETH. Conveniently, the 200 WMA sits at exactly the above price, which is why the second largest cryptocurrency has consolidated over the past 4 days.
As the article suggests, the coin is “out of its worst” levels we saw only a week ago and is now showing some signs of stabilization. U.Today previously noted the success of Dogecoin on the cryptocurrency market as Memcurrency successfully ranked as the most profitable asset among the top 100 cryptocurrencies by market capitalization over the past 24 hours.
But when the asset is comfortably sitting at support levels, the cryptocurrency market does not have enough buying power to push it above the earlier and generally weaker 21-day moving average.
The volume indicator also indicates that Ether is not doing well enough in the market as the asset’s inflows remain low, creating a declining volume trend which is the first sign of an upcoming bearish reversal.
Unfortunately, Ethereum has a long way to go to be considered a reversal or consolidating asset, as it has been in a sharp decline since April and needs to gain a foothold above the 200-WMA.
At press time, Ethereum is trading at $1,231 with a gain of nearly 3% of its value over the past 24 hours.