Ethereum's Price Drops By More Than 10% from a Record High of $2,600

This week, the overall crypto market has been sluggish. However, Ethereum has set a new high, hitting $2,644 yesterday and outperforming major cryptocurrencies.

However, the bullish trend did not continue today. As Bitcoin's price trend weakened and fell below the $50K mark today, the entire cryptocurrency market is currently in a state of chaos, and other virtual currencies have shown varying degrees of decline. ETH was not spared either, dropping by more than 10% today and trading at $2,141.

Ethereum (ETH) Price Analysis

Source: ETH/USDT Daily via TradingView

Judging from the daily candlestick chart, ETH hit a record high of $2,644.47 yesterday. However, the inverted hammer pattern was formed, which indicates that Ethereum's price triggered a large number of selling orders after hitting the high point, based on the uncertainty of ETH holders about the current crypto market.

At present, the bulls are actively fighting against the bears, attempting to hold Ethereum's price above the 20-day exponential moving average of $2,200. However, it seems that the bulls are not strong enough, as Ethereum is currently trading around $2,187.

The Moving Average Convergence Divergence (MACD) indicator shows that sellers have an advantage. At present, the MACD blue line has crossed below the signal line, indicating bearish momentum.

The Stochastic Relative Strength Index (RSI) confirms a solid bearish effect. In the short term, Ether may explore a lower price level unless the cryptocurrency gains strong support, such as an inflow of institutional funds.

If the bulls do not success push Ether's price above $2,200, then ETH/USD trading pair will soon fall below the $2,000 mark. In regards to Ethereum's trading volume, there is not a lot of buying support at the $2,000 mark. ETH/USD is very likely to test the 60-day moving average of $1,945.

A break below the 60-day EMA  of $1,945 will trigger an intensified sell-off for Ethereum, which may lead to a drop to the support level of $1,300.