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Monday, March 6, 2023

Ether: eyeing oversold side

Ether: eyeing oversold side

Ethereum / U.S. dollar BITSTAMP:ETHUSD

The sentiment on the market during the previous week was not so positive, after negative news related to Silvergate bank hit the market. Still, ETH managed to be on a downside, but the price of the coin did not lose significantly in value, which could be treated as quite positive. Eventually, some short term reversal was expected, after ETH was not able to overcome the $1,7K resistance line. Previous week the coin finished in red, moving between $1,680 down to $1,550. The support line at $1,520 has not been tested during the week.

RSI crossed the 50 line to the downside, which might be treated as an indication that the market is currently eyeing the oversold side. This implies that the price of ETH still has space to move to the downside, until a clear oversold market is reached. Moving average of 50 days continues to diverge from the MA200 counterpart, which is positive development, as it further confirms the Golden cross occurred a few weeks ago.

Current charts are showing potential that the $1,520 support line might be tested in the week ahead. This is also supported by the current developments with the RSI indicator. The price might go even lower from this level, to $1,5K, while there is no indication that lower grounds could sustain. Investors are generally on hold, in which sense, some significant moves to either side could not be expected. On the other side, there is some probability that the coin might modestly revert again to the level of $1,650.

from TradingView Ideas

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