Ethereum price has held above $1,900 against the current crypto market volatility. However, a bearish crossover continues to threaten a drop below this crucial level.
Summary
- Ethereum price approached the $1,900 support as liquidations mounted and investors moved away from risk assets.
- A bearish SMA crossover has been confirmed on the daily chart.
According to data from crypto.news, Ethereum (ETH) price briefly fell 12% to an intraday low of $1,930 on Monday before retracing back part of its loss as it stabilised around $2,000 at press time.
Ethereum has spent the last three sessions oscillating within a tight $1,900 to $2,000 corridor as traders weighed escalating geopolitical risks in the Middle East against a backdrop of persistent macroeconomic uncertainty.
Ethereum price fell after Bitcoin dropped toward $65,000 in response to oil prices climbing past $100 worldwide amid fears of a potential blockade in the Strait of Hormuz as tensions between the U.S. and Iran escalated.
As Ethereum price dipped, it liquidated highly leveraged bets across the derivatives market. Data from CoinGlass shows nearly $75 million was liquidated from ETH futures over the past 24 hours, with long positions accounting for the majority.
A jump in long liquidations can intensify selling pressure and accelerate downside momentum, particularly during periods of heightened market volatility, as experienced over the past 24 hours.
Technical indicators seem to suggest bears could soon gain the upper hand. On the daily chart, the 20-day moving average for ETH price action has confirmed a bearish crossover with the 50-day SMA. As long as these key moving averages continue to move downwards, the asset could struggle to find its footing.
Ethereum price has also moved below the Supertrend line, which confirms that sellers are currently in control. At the same time, the Chaikin Money Flow index showed a negative reading, an indication that capital has been flowing out from the asset.
Hence, Ethereum price remains at high risk of dropping under $1,900, which could trigger bears to retest the Feb. 24 swing low near $1,800.
On the contrary, if price returns above the 50-day SMA at $2,248, traders may view this as a positive change in the current market momentum.
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