The second largest cryptocurrency on the market has found a foundation for a reversal, according to a Bloomberg article. Ether plunged to $880, causing a trail of massive liquidations on the market, which created even more pressure on the asset's performance.
On June 19, Ether successfully rallied to $1,279 on Sunday and then retraced to $1,200, which still remains the key support zone for ETH. Conveniently, the 200 WMA sits exactly at the aforementioned price, which is why the second biggest cryptocurrency has consolidated for the last 4 days.
As the article suggests, tokens are "off their worst levels" that we saw only a week ago and are now showing some signs of stabilization. U.Today previously mentioned the success of Dogecoin on the cryptocurrency market as the memecurrency successfully gained a place as the most profitable asset in the top 100 cryptocurrencies by market capitalization in the last 24 hours.
But while the asset is comfortably sitting at the support level, there is not enough buying power on the cryptocurrency market to push above the first and usually weak 21-day moving average.
The volume indicator also suggests that Ether is not doing well enough on the market as inflows to the asset remain at a low level, creating a descending volume trend that is the first signal of an upcoming bearish reversal.
Unfortunately, Ethereum has a long way to go to be considered a reversed or even consolidating asset, as it remains in a sharp downtrend since April and needs to gain a foothold above the 200-WMA.
At press time, Ethereum is trading at $1,231, gaining around 3% to its value in the last 24 hours.