Ether Bulls Face Do or Die Moment as 200DMA Tested
• Ether (ETH) bulls are facing a do-or-die moment as the cryptocurrency retests key support in the form of its 200-Day Moving Average.
• Cryptocurrency markets have been taking a broad beating this week, in wake of Wednesday’s collapse of crypto-friendly bank Silvergate.
• The 200DMA is viewed as a key technical level by most traders, with a break above or below it often serving as confirmation of a significant shift in the market’s near-term momentum.
Ether Price Tests Crucial Support
Ether (ETH) bulls are facing a do-or-die moment, as the world’s second-largest cryptocurrency by market capitalization that powers the dominant smart-contract enabled Ethereum blockchain retests key support in the form of its 200 Day Moving Average (200DMA). The ETH price briefly dipped below the 200DMA to hit $1,408 before regaining some composure to trade closer to $1,450 once again. But ETH/USD is still trading down by around 6% on the day and more than 8% in the past 24 hours.
Macro Headwinds Weighing on Crypto Markets
Cryptocurrency markets have been taking a broad beating on Thursday in wake of Wednesday’s collapse of crypto-friendly bank Silvergate which has raised concerns that fellow crypto friendly financial institutions SVB Financial and Signature Bank might be next. Ongoing macro headwinds, with US dollar and US yields having seen significant upside in recent weeks as markets up their Fed tightening bets have been compounding things. Crypto traders will be nervously watching Friday’s US jobs report and next week’s US CPI report which could determine whether or not the Fed hikes interest rates by 25 or 50 bps later this month.
200DMA Key to ETH’s Near Term Outlook
The 200DMA is viewed as a key technical level by most traders. A break above or below it can signal or act as confirmation of a significant shift in the market’s near term momentum. Meanwhile if the market finds strong support at the 200DMA, or fails an attempt to break above it this is also sometimes interpreted as a signal that the market isn’t ready to shift direction just yet and may revert to its prior trend. Indeed, the 200DMA has certainly been a key level for Ethereum in recent months acting as ceiling twice in 2022 (April & November) confirming Bear Market was still play while decisive break above it mid January saw Bull Market return mid February finding strong support above it since then making Etherium holding steady during current Bear Market sentiment across wider Crypto Markets today.
Losing Grip on Support Could Signal End for Bull Run
It would be a significant blow to market sentiment if Ethereum was lose grip on its crucial support at 200 DMA signaling end for Bull Run that began back January 2021 potentially returning Bear Market conditions which prevailed throughout 2020 & early 2021 until April 2021 when Bitcoin surged setting up bull run over last 12 months pushing Ethereum from lows under $800 USD pushing Ethereum towards all time highs mid April close $2432 USD before pullback over last few weeks including today’s losses testing strength & commitment among Bull Runners going into summer 2021 & beyond..
Conclusion
The near term outlook for Etherium hinges upon whether or not it can hold onto its crucial support at its 200 day moving average (200 DMA). If it fails here then bullish runs may come to an end but conversely any bounce from here could signal even higher highs ahead for Etherium with risk appetite likely driving prices through remainder 2021 & beyond .