Why Ethereum May Retest The $2,500 Support Level

Ethereum has been on. A declining trend like the rest of the market but the leading smart contract platform has been on the receiving end of one of the most brutal beat downs. The digital asset that had managed to touch the $3,000 level last week had quickly lost its footing which saw its spiraling down once more. However, Ethereum did not establish any significant support, so it had continued to decline. With the recent decline, the digital asset had crumbled below significant support points. These include the 20 and 50-day simple moving averages which are crucial in establishing support and subsequent bottom for a cryptocurrency. For Ethereum, this has placed significant sell pressure on investors, and sell-offs have continued to rock the digital asset. Related Reading | Bitcoin Falls Back To $38,000 As Russia Steps Up Bombardment Of Ukraine One thing to note is the lack of any short-term support for Ethereum. For an asset to dip below its 50-day moving average, it shows reluctance on the part of investors to want to purchase the digital asset, and without any buying pressure, the supply of ETH on the market continues to outpace demand, hence eliminating scarcity and leading to a decline in the value. This puts ETH on a dangerous path going into the next bear market. As bears exert control over it, a failure to establish any kind of support means that Ethereum will not hold up against any type of resistance, pushing it ...