ETHUSD (Ethereum) has staged a significant rally since the beginning of the year, posting a fresh five-month high of 1,740 in mid-February. However, the digital asset has come under pressure lately, with the price crossing below its 50-day simple moving average (SMA) for the first time since January 4.
The momentum indicators currently suggest that the bearish forces are reigning supreme. Specifically, the stochastic oscillator is descending within its 20-oversold zone, while the RSI is ticking downwards below its 50-neutral mark.
To the downside, if selling pressures persist, initial support could be met at the recent low of 1,460. Sliding beneath that floor, the price could descend towards 1,150 or lower to test the November double-bottom region of 1,070. A break below the latter could open the door for the 2022 bottom of 880, which is also a two-year low.
Alternatively, should the price reverse higher, the 1,677 resistance zone, which also held strong in November, could act as the first resistance point. Conquering this barricade, the bulls may aim for the 2023 peak of 1,740 before the August high of 2,030 appears on the radar. Even higher, the 2,186 hurdle could prove to be a tough one for the price to overcome.
Overall, even though some oversold signals have emerged, ETHUSD keeps sloping downwards after violating the crucial 50-day SMA. For that bearish tone to reverse, the price needs to cross above the 1,740 ceiling.
