(DAILY NOTION): ETH/USD: A Strong Catalyst Needed for A Definite Price Action

Source: Yahoo Finance

After a rather volatile start to the week, ETH/USD has been trading sideways for the past two days. However, at the time of writing, the price of Ethereum has been moving south and currently stands at $1,494.01. At present, the price is trading well below its 50-day Simple Moving Average (SMA), as indicated by the purple line in the chart above.

The volatility is also reflected in the Relative Strength Index (RSI), which has dropped from a high of 81 before moving in a choppy trend. It currently stands at 43, a mid-point level between an overbought and oversold condition, which can be reflective of the market waiting for firmer clues on Ethereum’s direction.

Key support levels to keep an eye out for lies at $1,200, $1,040 (the late-January lows), and $1,000, as reported by analyst Anil Panchal from FX Street.

Meanwhile, on the upwards direction, key resistances can be found at $1,710, the mid-month high around $1,880, and $2,000. A successful break past the $2,000 level would stamp the cause for the bulls to move towards $2,041.

According to data from Coin Market Cap, in the past seven days, ETH/USD has experienced more than a 20% dip in value, at the time of writing.

Over in the broader markets, it has certainly been an eventful week as both the Biden stimulus package and vaccination efforts continue to progress, giving hope to an impending economic recovery.

Could a rise in positive risk sentiment stand in the way of digital currencies stamping their mark in the economy? After all, cryptocurrencies have recently benefited after the pandemic ravaged the economy, which led to traders looking for alternative assets as a hedge to inflation.

At this moment, however, a strong catalyst is needed for a definite price action. As the bulls and the bears tussle it out, what do the coming days ahead hold for the flagship Altcoin? 

ETH/USD (as of Feb 26, 2021, 9.30 a.m., GMT +8) - $1,494.01