Ethereum price plummeted on Thursday following the retrieval of some price swing in the market that was primarily associated with top Twitter accounts hacks that occurred recently. Since more than a week ago, Ether had remained pivotal at $240.
Prior to that, ETH/USD has blown up through the north while testing the resistance level at $245. Unfortunately, the gloomy action across the cryptocurrency market and importantly, Bitcoin, made it hard to sustain gains ahead of $250, in the stead, the price merely revised to $240.
The deterioration pushed Ethereum below various major support areas including the $235 area. As well as the 21-day Exponential Moving Average (EMA) through $230.
The regions that opposed the motion were the minor support at $228 and the 50-day EMA. Many analysts are of the opinion that if Ethereum price drops under the $225 support. It would be the end of the ‘altcoin season’ that is still in its early stages.
At the moment, the price is still clenching above the 50-day EMA. Nonetheless, a comeback against the support turned resistance at $235 is a difficult task.
Technically speaking, buyers have just sufficient strength to clasp above the key support levels at $230, the 50-day EMA, and $228. The Resistance Strength Index RSI, for instance, is static at 50. This is a circumstance that primarily leads to consolidation.
The same horizontal trading action is enhanced by the MACD. The indicator is also clenching to the midline but a small bearish divergence hints that losses are not out of the picture.
In other words, although there are indications of a comeback, Ethereum has not shown enough parameters for a breakout. Moreover, the instability across the cryptocurrency market is still at the lowest levels in the last three months.