ETHUSD (Ethereum) has experienced a sharp decline in the short term, with the price hitting a fresh four-month low of 1,070. However, the cryptocurrency managed to recover some ground and has been trading sideways in the last few daily sessions.
The momentum indicators currently reflect that near-term risks remain tilted to the downside. Specifically, the RSI is declining beneath its 50-neutral mark, while the stochastic oscillator is descending near its 20-oversold region.
Should sellers push the price lower, immediate support could be met at the recent low of 1,070. If that floor collapses, Ethereum could test the 2022 low of 880. Failing to halt there, the price could decline to form fresh multi-month lows, where the December 2020 resistance of 625 may provide downside protection.
On the flipside, bullish actions could propel the price towards the 50-day simple moving average (SMA), currently at 1,370. Piercing this threshold, the bulls could aim for the recent peak of 1,675 before the spotlight turns to the trend reversal point of 2,030. Even higher, further advances might come to a halt at the 2,450 support territory, which could now act as resistance.
Overall, ETHUSD appears to be in a consolidation mode after it encountered tough support. Hence, a break above or below its tight range is likely to be followed by a significant move towards the same direction.Â
