The cryptocurrency market is almost completely red on April 6 after aggressive comments from several members of the Federal Reserve highlighted their view that it would be necessary to aggressively raise interest rates and reduce bond purchases to combat inflation. Members admitted that this would lead to negative pressure on the financial markets and this appears to be exactly what happened today.
Data from Cointelegraph Markets Pro and TradingView shows that Ether (ETH)’s downward move accelerated on Wednesday and dropped the top altcoin to a low of $3,178 before the sell-off tapered off and the price recovered to $3,200.
Here’s what several analysts are saying about this latest Ether pullback and what support levels to watch for in the event of a further move lower.
Ether could drop to $2,600
Market analyst and pseudonymous Twitter user ‘Rekt Capital’ discussed Ether’s outlook following a rejection of monthly resistance at $3,400, who public the chart below and noted that if this were to happen, “Ether could revisit $3,000,” as indicated by the black line on the chart.
Rekt Capital said,
“But September 2021 has shown that when black retests on a dip, bearish wicks occur. So if Ether drops to black, it could wick to the green upper low.”
Based on the chart provided, this would result in a potential drop to $2,602.
Will the $3,200 support hold?
A word of reassurance for concerned Ether holders was offered by crypto trader and pseudonymous Twitter user ‘CryptoBatUSDT’, who public the chart below highlighting a retest of an important support level.
CryptoBatUSDT said,
“The market structure remains bullish, currently in the Range (Ec) zone and a Swing Low (HL). Unless this level is lost, I will look to open a long position in these regions.”
The price remains between the 200-MA and the 200-EMA
More information on Ethereum’s support at this current price level was provided by crypto trader and pseudonymous Twitter user ‘Don Yakka’, who posted the chart below noting the importance of the 200-day moving average (MA) and moving average exponential (EMA).
Don Yakka said,
“Very similar to the BTC chart, the 200 day moving average is resistance and the 200 day EMA is support, as long as the 200 day EMA holds [el] daily, I wouldn’t panic.
The global cryptocurrency market capitalization now stands at $2.003 trillion and the dominance rate of Bitcoin is 41.5%.
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