Ethereum market update: ETH/USD rebounding from $280 support
|- Ethereum joins Bitcoin in fresh declines on Monday.
- Recovery back above $300 will not be easy according to the prevailing technical picture.
Ethereum in tandem with Bitcoin price is leading the market in declines on the first day of the month which also happens to be the first day of this week’s trading. Bitcoin broke below $11,000 and is exploring the levels towards $10,000 while Ethereum declines to retest $280 support.
Despite the brief flash drop, I expect Ethereum to rebound above $90 just as quickly as it dropped to $280. However, correction above $300 will not be an easy one according to the current technical picture.
The Relative Strength Index (RSI) has touched the oversold at 30. The gradual recovery means that selling pressure is still high. The same negative signals can be read from the Moving Average Convergence Divergence (MACD) on the 1-h chart. The indicators divergence south shows that bear pressure is outdoing buying pressure at the moment.
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