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Ethereum fell deeper into the red zone on another bearish day for the market’s alts, but the $3,600-$3,810 range provided some help to the bulls. EOS fell to the 61.8 percent Fibonacci retracement stage above $10. MATIC, on the other hand, shocked the market by reporting losses in the last 24 hours, but low volumes contributed to the scepticism.
Recently, the price of Ethereum has been inversely proportional to the price of Bitcoin. Although the king coin entered a stabilisation process, Ethereum achieved numerous milestones of its own, with the most recent rally lifting ETH from $3,200 to an ATH above $4,300. While the economics of ETH were the primary drivers of this price increase, it was difficult to disregard the technological component of its price.
The sector eventually saw a correction, with the world’s largest altcoin dropping to a purchase zone available between $3,600 and $3,810. Although the bulls were able to absorb some losses in this area, they will need to protect it in the coming sessions as well.
According to the Awesome Oscillator’s red bars, momentum was high on the sale hand. This indicated that the $3,600-support was more of a temporary buffer than a catalyst for a bullish rebound. The RSI fell below 54 for the first time since April 26th, and a jump into the oversold zone will indicate further southbound movement for ETH.
The Fibonacci tool on EOS demonstrated a few reliable support areas during the 4-hour timeframe. During recent pullbacks, the Fibonacci values of 61.8 percent ($9.8) and 50 percent ($8.7) have held up particularly well. A fall below these thresholds, on the other hand, could significantly dampen EOS’s short-to-medium-term trajectory.
The 38.2 percent Fib level at $7.7 provided the bulls with a stopping point. Surprisingly, this region also corresponded to the 200-SMA. A break below the long-term moving average could lead to a sustained bear market, making it difficult for bulls to reclaim leverage.
Prior to the pullback, the RSI was not only overbought, but it also displayed a bearish variance with the market. Perhaps a more concerning indicator was the OBV’s recent downward slide. With significant selling pressure in the market, EOS can fail to initiate a short-term recovery.
A rise above the upper sloping trendline, on the other hand, would signal a revival of purchasing pressure.
Despite a 2.4 percent gain in the previous 24 hours, MATIC remained optimistic at the time of publication, defying the wider market trend. The 4-hour map showed buying near the $1.02 mark, which corresponded to the 20-SMA. On the downside, volumes around exchanges were not at levels seen in recent days, which may put a wrench in the works.
If the wider market remained bearish, selling pressure was expected to resume at $1.22. However, an increase in volumes may signify a strengthening trend.
The MACD was approaching a bullish crossover and remained well above the half-line. On the other hand, a drop below equilibrium may activate some support lines. A few of them were trading at $0.93 (50-SMA), $0.85, and $0.68. Meanwhile, according to the Chaikin Money Flow, capital inflows into MATIC have stayed stable.
MATIC’s most recent surge was most likely the product of a mixture of factors rather than just emotion.