Today, ETH price jumps to the highest level to $3,230 since January 21th. However, it soon pulls back and is trading around $3,100 at the press of time.
What pushes ETH go high?
Following a strong performance in the crypto market in the past week, sentiment among market participants is also improving. As also announced yesterday morning was a $450 million investment by Sequoia Capital India, Andreessen Horowitz, and Tiger Global in Polygon, a Layer 2 blockchain that serves as a support layer to Ethereum. However, ETH appears weak with decreasing volume and is losing momentum. The resistance at $3,200 may be hard to pass for that reason.
ETH Will Eye More Loss if Declines Below $3,100
Even if ETH is above $3,000, this latest price action can quickly reverse if selling pressure intensifies. On the 4H chart, ETH price crosses below MA5 and MA10, and closes with a big red candlestick. MACD indicator signals bearish divergence, while RSI also drops from the overbought zone. If ETH declines below $3K mark and enters a pullback, $2,700 will be the next possible target.