The expected price correction in the cryptocurrency market has finally taken place over the past few days. Most coins are plunging into a bearish trend, while market leaders such as Bitcoin and Ethereum see a correction of more than 12% in price from monthly highs.
The second largest cryptocurrency Ethereum outperformed during its Shapella upgrade, after which buyers started booking profits. After hitting a 2023 high at $2,137 on April 16, Ethereum price saw a 15% drop and hovering close to $1,800 support level.
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At the time of publication, ETH is trading at $1,820 against the USDT pair and CoinMarketCap data is showing a loss of 13.5% over the past 7 days. As a result, the market capitalization returned to $219.2 billion today.
Amidst the ongoing correction, ETH slipped below the 20-day exponential moving average at this price point, bulls need to hold the price above $1800 to avoid the 5% drop looming over their head this week. If ETH drops below $1800, the bears could drag it towards the 0.618 Fibonacci retracement level of the pair.
However, since the last few days the trading volume looks neutral, which could be an opportunity for the bulls to reverse the trend. Conversely, the RSI is poised to dive into the oversold zone as it remains below the semi-line on the daily chart.
Bears Eye on ETH/BTC Pair
The Ethereum/Bitcoin pair appears to be weaker than the Ethereum/Dollar pair for a longer term outlook. Investors celebrated the high of the year in the ETH/BTC pair, on the other hand, Ethereum is still following the lower-highs series from the past 8 months against Bitcoin.
Sellers abandoned the ETH/BTC pair at the descending resistance level as well as the 200-day simple moving average.
So far the ETH/BTC pair is holding well above the 50 SMA, and is trading at 0.0666 BTC. Today’s price closing will suggest the next move for the directional trend. If the pair slips below the 50 SMA, the bulls are likely to experience a set back and prices will likely drop down.
