Ethereum is currently trying to settle below the $2,400 level as the crypto market sell-off continues.
Ethereum Is Losing Crypto Market Share To Bitcoin
Bitcoin has successfully managed to settle below the psychologically important $40,000 level and is testing the $35,000 level. Other coins have suffered bigger losses, so Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, has moved towards the 42% level.
The recent developments indicate that the financial industry treats Bitcoin as the “safest” crypto, while other cryptocurrencies, including Ethereum, are considered to be more speculative.
Ethereum had already lost more than 50% of its value since early November when it touched highs near the $4,850 level. Interestingly, S&P 500 futures are moving higher in premarket trading after Friday’s sell-off which indicates that there is some appetite for risk. However, there is no appetite for risk in crypto markets, so Ethereum remains in freefall.
Ethereum Is Oversold But May Go Lower
ETH managed to settle below the support level at $2,550 and is testing the next support level which is located near $2,400. RSI is in the oversold territory, so the risks of a pullback are increasing. However, RSI has recently moved away from the extremely oversold territory, which means that there is some room to gain additional downside momentum in case the right catalysts emerge.
In case ETH manages to settle below $2,400, it will head towards the next support level which is located near the recent lows at $2,300. A move below this level will push ETH towards the support at $2,200. If ETH declines below $2,200, it will head towards the next support at $2,050.
On the upside, the previous support at $2,550 will serve as the first resistance level for ETH. In case ETH gets above this level, it will head towards the resistance at $2,650. A successful test of the resistance at $2,650 will open the way to the test of the next resistance at $2,750.
This article was originally posted on FX Empire
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