Ethereum’s (ETH) price dipped below its 20-day exponential moving average (EMA) and 50-day simple moving average (SMA) on October 1. Since then, it has struggled to break back above these levels, which have become resistance points.

The failure to overcome these resistance levels suggests a potential hesitation among buyers to enter the market at higher prices. 

Ethereum Struggles Below Resistance

Ethereum is currently trading at $2,398, slightly below its 20-day Exponential Moving Average (EMA) of $2,462 and its 50-day Simple Moving Average (SMA) of $2,483. The 20-day EMA reflects the average closing price over the last 20 days, while the 50-day SMA provides a longer-term perspective by tracking the asset’s average closing price over the past 50 days.

When an asset’s price falls below these moving averages, it typically indicates a bearish trend or a loss of upward momentum. In this case, these moving averages act as resistance levels, making it challenging for Ethereum to rally unless there is a significant increase in demand.

Read more: How to Invest in Ethereum ETFs?

Such demand is lacking in the Ethereum market, as evidenced by its negative Chaikin Money Flow. This indicator, which measures money flow into and out of the coin’s market, is in a downward trend and below the zero line at -0.08.

When an asset’s CMF is negative, it indicates more selling pressure than buying pressure. It reflects the bearish sentiment among traders and investors, hinting at an extended decline. 

Go to Source to See Full Article
Author: Abiodun Oladokun